CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 1
Cover
CONSUMER HOUSING
TRENDS REPORT 2016
CONSUMER HOUSING TRENDS REPORT 2016

SPONSORS: Katie Curnutte, Stan Humphries, Sarah Makar,
MaryKaye O’Brien, Jeremy Wacksman
CONTRIBUTORS: Jamie Anderson, Cheryl Channing, Joy Chen,
Emily Heffter, Jane Hodges, Sarah Mikhitarian, Cat Neilson, Bradley O’Neal,
Erika Riggs, Nancy Robbers, Lauren Spohr, Amanda Woolley
Copyright © 2016 by Zillow Group, Inc. and/or its affiliates. All rights
reserved. No part of this publication may be reproduced, distributed, or
transmitted in any form or by any means without the prior written
permission of Zillow Group, Inc.

CONSUMER HOUSING
TRENDS REPORT 2016

CONTENTS
1
3
5
FOREWORD
METHODOLOGY
EXECUTIVE SUMMARY
9 TODAY'S HOME BUYER 51 THE MULTIFACETED
MILLENNIAL
11
11
13
13
14
14
16
17
18
BUYER CHARACTERISTICS & CONSIDERATIONS
Buyers are young, educated and diverse
Nearly half buying for the first time
Home shopping a shared project
Typical home search takes about four months
Most buyers desire a single-family house
Distressed properties an option for the budget-conscious
Brand-new homes a popular consideration
Many buyers consider renting
54
54
55
55
55
Importance of home and community
Not just urban dwellers
The impact of technology
Conversations matter
The value of expertise
57 TODAY'S HOME SELLER
19
19
21
22
22
23
25
25
29
30
31
33
33
35
36
36
37
39
41
43
43
44
45
47
SEARCHING & SHOPPING RESOURCES
Online resources and agents top the list
Buyers use multiple devices to access online resources
Use of agents varies by generation & ethnic group
Half of buyers enlist an agent at the start
Buyers consider at least two agents
Buyers expect fast response to initial inquiry
Local market knowledge and a positive first impression are key
Preferred communication is via phone call
Home tours rank as top service
SNAPSHOT: THE MANY FACES OF
HOMEOWNERSHIP
HOME SELECTION & PURCHASING FACTORS
In-person tours are paramount
Affordability and safety are most important
Single-family homes are predominant choice
Condos appeal to young and old
Typical home purchase
Value and location top reasons to a seek brand-new home
Most buyers leave neighborhood
FINANCING & LENDER DECISIONS
Pre-approval now commonplace
Financial tools a helpful first step
Majority of buyers get a mortgage
One lender for both pre-approval and mortgage
59
59
61
61
62
64
65
65
68
69
72
73
74
75
77
79
79
79
81
81
83
85
87
88
89
89
SELLER CHARACTERISTICS & CONSIDERATIONS
Sellers are educated, married and new to selling
Most are first-time sellers
Home selling a shared role
Life events often a trigger
Many are also buying
LISTING & SELLING PROCESS
The average home for sale
Deciding to sell takes nearly five months
Home improvements are first step
Getting ready to list
Activities while on the market
Gauging buyer interest is key
Rating the selling experience
SNAPSHOT: SELLING ABOVE LIST
PRICE—WHAT WORKS
RESEARCH & SELLING RESOURCES
Online resources and agents are key
Use of resources varies by age
Majority of sellers involve an agent from the start
Sellers consider an average of three agents
Local market knowledge and a positive first impression
are vital
Help with list price most valuable service
What agents are paid
Millennials most likely to negotiate
FSBO SELLERS
Going it alone
CONSUMER HOUSING TRENDS REPORT 2016

91
93
95
95
97
99
99
101
101
102
104
105
107
108
109
109
111
112
115
117
118
121
FAMILIES AND
HOMEOWNERSHIP
Looking for a family home
Budget considerations
Renovations and refinancing
TODAY'S HOMEOWNER
HOMEOWNER CHARACTERISTICS
& CONSIDERATIONS
Homeowners are married, educated and mid-career
Younger owners are more diverse
Differences by region
Many still reside in first home purchased
Homeowners are primarily couples
Most live in the suburbs
Single-family homes are predominant
More than half built before 1980
HOME IMPROVEMENTS & UPDATES
Majority of owners make updates
Advice sought from multiple resources
Majority willing to DIY
Most projects stay within budget
Majority of projects meet expectations
Ongoing maintenance
SNAPSHOT: THE DRIVE TO DIY
135 TODAY'S RENTER
137
137
139
139
139
142
143
143
144
145
156
147
149
149
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152
153
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154
155
158
RENTER CHARACTERISTICS & CONSIDERATIONS
Most earn less than $50,000
Home shopping a shared effort
Typical home search takes two to three months
Renters seek single-family homes
More than half consider buying instead
SEARCHING & SHOPPING RESOURCES
Online resources and rental professionals most common
Online resources accessed in a variety of ways
The role of property managers and landlords
Fast response times are critical
SNAPSHOT: LONG-TERM RENTERS
RENTAL SELECTION & LEASING FACTORS
Evaluating prospective rentals
Affordability and safety are most important
Where renters land
Characteristics of homes rented
Most renters stay local
Yearly leases typical
EXHIBIT LIST
NOTES
123
123
124
126
129
130
131
131
133
134
REFINANCING & LENDER DECISIONS
Most still paying off mortgage
Just under half have refinanced
Selecting a lender
Renting the home
Owning additional homes
LOOKING AHEAD & NEXT STEPS
Home improvement projects
Likelihood to sell
Communicating with agents
CONSUMER HOUSING TRENDS REPORT 2016

1 |
FOREWORD
FOREWORD
For more than a decade, Zillow® has been helping millions of
Americans do their homework. Our users have trusted us when
it was time to make life’s biggest financial decisions: finding a
great apartment, buying a first home or downsizing later in life.
We are probably best known for tracking the value of 110 million
homes with the Zestimate®, and we’ve always done research
into Americans and their homes. Our company, now called
Zillow Group, came of age during a time of huge change in the
way consumers interact and make decisions, as an increasing
amount of our lives are lived online, and computers have gone
from desktops to pockets. Today’s youngest homeowners have
never known a world without the internet.
That’s why we decided it was time to embark on the most
comprehensive research ever done about home buyers, sellers,
owners and renters. The Zillow Group Report on Consumer
Housing Trends is our homework—a deep report on all the people
for whom Zillow has become such an important touchpoint.
We were curious about how buyers and sellers approached
decisions and making deals, but we also wanted to know about
homeowners and their approach to everything from finding a
lender to remodeling the kitchen. Finally, we wanted to survey
renters—who are an increasingly large demographic and likely
tomorrow’s buyers.
To accomplish this ambitious goal, we surveyed an unbiased
sample of more than 13,000 homeowners, sellers, buyers
and renters. The results paint a rich picture of all the people
involved in the process of deciding where to live—a younger
and more diverse group than many appreciate.
Half of all buyers are under age 36, meaning the Millennial
generation is driving more of the housing market than we
previously understood.
CONSUMER HOUSING TRENDS REPORT 2016

FOREWORD
| 2
We also discovered that buyers aren’t replacing the expertise
of real estate agents with online research—but they are doing
a tremendous amount of research online before contacting an
agent. Those who start their home searches online are actually
more likely to use an agent than other buyers.
We asked families with kids about their finances and found
they are scraping together down payments from savings, gifts
and retirement funds to buy bigger homes, and then borrowing
money to renovate and make repairs.
And we learned about priorities: For more than a third of
renters, finding a place that will allow their pets is paramount—
often cited as more important than a shorter commute.
This Zillow Group Report sheds light on large demographic
trends, brings context to the conversations happening around
kitchen tables across the country, and adds value to our
partnerships with the country’s most savvy real estate agents
and organizations. These insights are critical to our mission of
empowering customers to make smarter, more informed decisions
about their homes. It’s something we call “turning on the lights”
and it means our users are more able to make good decisions if
they have all the information we can possibly give them.
If you’re a real estate or rental professional, you’ll find rich
insights to help build your business and serve your customers. If
you’re a journalist or a researcher, there is plenty of fodder here
to track economic and social trends.
And if you’re a buyer, seller, homeowner or renter hungry for
information, I’m honored to have your trust as you find your
way home. Enjoy the first annual Zillow Group Report on
Consumer Housing Trends.
Stan Humphries, Ph.D.
Chief Analytics Officer and Chief Economist, Zillow Group
@stanhumphries
CONSUMER HOUSING TRENDS REPORT 2016

3 |
METHODOLOGY
METHODOLOGY
RESEARCH APPROACH
In order to gain a comprehensive understanding of the United States residential real estate market,
Zillow Group employed independent market research firm Lieberman Research Worldwide® to conduct
a nationally representative, online quantitative survey. The blinded, self-administered study was fielded
between April 27 and May 12, 2016.
COMPLETES & QUALIFICATIONS
This 160-question survey gathered information from a total of 13,249 consumers among the following
consumer populations:
POPULATIONS INTERVIEWED BASE SIZES (n) POPULATION DEFINITION
PAST-YEAR BUYERS
3,003
• Moved primary residence in past 12 months
• Resides in a home that is owned
• Has responsibility or influence in making home-related decisions
PAST-YEAR SELLERS
3,003
• Moved primary residence in past 12 months
• Resided in a home that was sold
• Has responsibility or influence in making home-related decisions
LONG-TERM HOMEOWNERS
3,082
• Has not moved primary residence in past 12 months
• Resides in a home that is owned
• Has responsibility or influence in making home-related decisions
PAST-YEAR RENTERS
3,000
• Moved primary residence in past 12 months
• Resides in a home that is rented
• Has responsibility or influence in making home-related decisions
LONG-TERM RENTERS
1,161
• Has not moved primary residence in past 12 months
• Resides in a home that is rented
• Has responsibility or influence in making home-related decisions
In addition to the subgroup-specific definitions stated above, all respondents surveyed were ages 18-75.
RESEARCH DESIGN & ANALYSIS
The survey gathered information on a wide range of areas, including but not limited to: home and
community characteristics, behaviors and attitudes of buyers, sellers, and renters, resource usage, home
financing, home maintenance and improvements, and the role of professionals (e.g., agents, property
managers, landlords, mortgage providers, etc.). In addition to traditional analysis of stated metrics,
MaxDiff analyses were also completed among the Past-Year Buyer and Past-Year Renter populations to
understand preferences and trade-offs when deciding on a home to buy or rent, respectively.
CONSUMER HOUSING TRENDS REPORT 2016

METHODOLOGY
| 4
SAMPLING & WEIGHTING
Data was gathered via both General Market and additional targeted subgroup sampling to guarantee robust
base sizes for analysis. Additionally, several steps were taken to ensure sample representativeness. The initial
sending of General Market sample was balanced according to the U.S. 2010 Census population. The associated
screening data on age, gender, income, ethnicity and region was weighted to correct for response rates.
Additionally, all data were reviewed to ensure that the subgroup populations were representative and in
accordance with age and ethnicity of their respective housing subgroup.
QUALITY CONTROL
Several quality control measures were taken to ensure data is accurate: proprietary digital fingerprinting
techniques were employed to identify and terminate any professional respondents, robots, or those taking
the survey on multiple devices; speeder checks ensured those who rushed through the screener or survey
did not count as complete; in-survey quality control checks identified illogical or unrealistic responses.
Anyone identified via digital fingerprinting, speeders, and those who failed a given number of quality
control checks within the survey were not counted as completes. Additionally, the study was blinded—
Zillow Group was not revealed as the sponsor—to reduce response bias.
REPORTING BY SUB-GROUPS
In addition to the consumer housing populations, the report also breaks down results by the
following sub-groups:
SUB-GROUP POPULATION DEFINITIONS
AGE
MILLENNIALS
GENERATION X
BABY BOOMERS
SILENT GENERATION
• Ages 18 - 34
• Ages 35 - 49
• Ages 50 - 64
• Ages 65 - 75
HOUSEHOLD COMPOSITION
SINGLES
COUPLES
FAMILIES
HOUSEHOLDS WITH CHILDREN
HOUSEHOLDS WITH NO CHILDREN
REGION
NORTHEAST
SOUTHEAST
MIDWEST
SOUTHWEST
WEST
• Lives on their own
• Lives with spouse/partner
• Lives with children, parent, grandparent, and/or another family member
• Lives with children under the age of 18
• Does not live with children under the age of 18
• Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, Vermont
• Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee,
Virginia, West Virginia
• Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin
• Arizona, New Mexico, Oklahoma, Texas
• Alaska, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming
CONSUMER HOUSING TRENDS REPORT 2016

5 |
METHODOLOGY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The home buying experience is both an intimidating financial
transaction and an emotional milestone. Half of home
buyers in the U.S. are under 36, meaning a new generation—
Millennials—is shaping the future of real estate. Despite
demographic reports about young adults’ urban lifestyles,
Millennials share their parents’ aspirations for a single-family
home, often in the suburbs.
The process of finding or selling a home is much more
collaborative for Millennials than for older generations.
They bring all available tools to the process, including their
smartphones, social media and online networks. While older
generations rely on real estate agents for information and
expertise, Millennials expect real estate agents to become
trusted advisers and strategic partners.
Millennial home buyers are also diverse. While only 9 percent
of all homeowners are Hispanic, nearly 15 percent of the
Millennials buying homes are Hispanic—reflecting the changing
demographics of the American middle class.
Homeownership remains a vehicle for wealth in the U.S., but
it can also be a financial burden, as families stretch their
finances to afford the space they need, and large, dated homes
owned by Baby Boomers and the Silent Generation demand
maintenance and improvements.
CONSUMER HOUSING TRENDS REPORT 2016

METHODOLOGY
EXECUTIVE SUMMARY
| 6
BUYERS
• Half (50 percent) of today’s home buyers are under the age of 36, and 47 percent are
first-time buyers. Solo home buyers are in the minority; most buyers are shopping with a
spouse or partner (73 percent).
• Eighty-three percent of buyers are shopping for a single-family house. Their top
considerations are affordability and being in a safe neighborhood.
• Fifty-two percent of buyers consider renting while they’re shopping for a home—a
number that’s even higher among younger buyers.
• Seventy-five percent of buyers hire a real estate agent during the buying process.
• Across all generations, almost nine out of 10 buyers (87 percent) use an online resource
at some point in their search for a home to buy.
• Millennial home buyers share many concerns and preferences with their grandparents’
generation, both choosing homes with shared community amenities and considering
townhouses at higher rates than those ages 35-49. However, Millennials’ home-buying
process is significantly different from their grandparents' process.
• Millennial home buyers wait longer to buy a first home than previous generations. i The
modern-day “starter home” is nearly as large as the median home for “move-up” buyers,
and costs about 18 percent less.
• Millennial home buyers undertake far more social home searches, seeking input from
friends, relatives and neighbors 58 percent of the time, versus the Silent Generation, who
poll friends just 37 percent of the time.
• More than a quarter (26 percent) of buyers find an agent online. A third (33 percent) find
an agent through a personal referral.
• Millennials scrutinize more agents, asking friends and family about their experiences with
agents and reading online reviews more than other generations.
• When it comes to choosing an agent, Millennials and other generations share their top
priority: a sense that an agent is trustworthy and responsive to their needs.
• The average shopper goes on seven home tours, and while they may incorporate online
research, they tend to be hands-on at decision time, preferring to meet an agent in
person or talk on the phone, and prioritizing private tours of homes led by a professional.
• Only 46 percent of buyers get the first home on which they make an offer, reflecting the
reality that in today’s tight market, the search—which takes an average of 4.2 months—
comes with competition and disappointment.
• Over half of buyers (56 percent) save up for a down payment by setting aside a little
money at a time. Almost a third (32 percent) use more than one source for their down
payment, including gifts and loans from family, selling stocks and bonds, and cashing in
retirement savings.
CONSUMER HOUSING TRENDS REPORT 2016

7 |
EXECUTIVE METHODOLOGY SUMMARY
SELLERS
• Today’s sellers are most often members of Generation X (38 percent), and the majority
(63 percent of all sellers) are listing a home for the first time.
• Those listing a home for sale commonly had a recent job change or promotion (26
percent), a shift in financial circumstances (24 percent), retirement (16 percent) or
another life change, such as the birth of a child, marriage, divorce, or becoming an
empty nester.
• Most sellers are trading their homes for one they see as an upgrade, seeking a median
of 100 more square feet and a home that costs an average of 11 percent more.
• Sellers’ top regret was that they didn’t take more time to prepare for a sale (30
percent). Women consider selling for an average of 5.9 months before listing; men
consider it for 4.6 months.
• Eighty-eight percent of sellers use an agent to sell their home, and the majority (69
percent) of sellers who use an agent elect to bring them on board at the beginning of
the process.
• Unlike buyers, Millennial sellers are just as likely as older generations to use an agent
for a sale. However, Millennials are more likely than older generations to use online
resources in their sale as well.
• Sellers look to their agents most often for pricing help (50 percent) and contract
negotiation (35 percent). Millennials tend to rely on their agent for legal advice and
determining the best time to list their home for sale.
• Eighty-three percent of sellers make home renovations before listing. The most
common improvements are painting (45 percent) and renovating the bathrooms
(31 percent).
• When marketing their homes, Millennials are more likely than older sellers to use video
footage (29 percent) and promote their listing on social media (28 percent).
• In the time it takes to sell—2.8 months on average—two-thirds of sellers (66 percent)
elect to change their listing price at least once. Thirty-nine percent changed the listing
price of their home two or more times.
HOMEOWNERS
• The average U.S. homeowner—meaning those who have lived in their home at least one
year—is white (77 percent), a Baby Boomer (35 percent) and college-educated (64
percent). Forty-eight percent earn $75,000 or more a year.
• Three-quarters (73 percent) of homeowners live with a spouse or partner. Thirty-five
percent have children under 18 living with them, and 44 percent live with a pet.
CONSUMER HOUSING TRENDS REPORT 2016

EXECUTIVE METHODOLOGY
SUMMARY
| 8
• More than half (52 percent) of U.S. homeowners live in the suburbs, 23 percent live in
urban areas and 25 percent in rural areas. A larger share of Millennial homeowners live in
urban areas than older generations, but 47 percent live in the suburbs.
• More than half of all homeowners purchased a property that needed updates.
• Of homeowners making repairs and updates to their homes, 62 percent say they’d prefer
to do the work themselves over hiring a professional.
• Forty-three percent of mortgaged homeowners have refinanced their mortgage at least once.
• Ninety-three percent of homeowners say they have no interest in renting out part of their
primary home to strangers in order to make extra money, although owners in the West are
slightly more open to the idea.
RENTERS
• Renters are disproportionately female (57 percent) and people of color (48 percent), and
58 percent earn less than $50,000 a year. They are also younger than homeowners—84
percent are under 50.
• While looking for a rental, 58 percent of renters consider buying a home instead.
• Forty-eight percent of renters consider a single-family house, but only 28 percent lease one.
• Renters spend an average of 10.4 weeks searching for a home, and they typically contact
five landlords or property managers and submit three applications.
• Renters’ top priorities are finding a home in their budget, living in a safe neighborhood,
and finding a place that accepts pets.
• The median monthly rent in the U.S. is $872 a month, but it varies by region.
$1,100 in the West $800 in the Southeast
$1,000 in the Northeast $715 in the Midwest
$875 in the Southwest
• Thirty-five percent of renters who have not moved within the last year have no plans to move.
CONSUMER HOUSING TRENDS REPORT 2016

9 | BUYERS
1
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 10
TODAY’S
HOME BUYER
Today’s home buyers are redefining so-called starter homes and buying
the most expensive home they can afford—and freestanding houses are
their top choice. Dominated by older Millennials and younger members
of Generation X, today’s buyers instinctively use virtual tools and word of
mouth to understand what’s happening in their market, but mirror older
generations in their appreciation for the local expertise and guidance agents
contribute to the buying process.
Most buyers finance their home purchase with a mortgage and most are
shopping for a new home in the area where they already live. In today’s
competitive housing market, nearly all buyers get pre-approved for a loan
early in the home shopping process, and they typically make more than
one offer before succeeding with a purchase. To find an affordable home in
the right location, buyers will consider fixer-uppers, foreclosures and even
properties just outside their budget.
CONSUMER HOUSING TRENDS REPORT 2016

11 | BUYERS
BUYER CHARACTERISTICS
& CONSIDERATIONS
BUYERS ARE YOUNG, EDUCATED AND DIVERSE
Buyers are defined as people who moved into a home that was purchased within the last
year, which includes the main decision-makers and household members who had a say in
the decision.
The typical home buyer is in their mid-to-late 30s or early 40s, married (67 percent),
college-educated (75 percent), and on the hunt for a single-family home (83 percent).
They have a median annual household income of $87,500. Seventy-five percent are
Caucasian, with additional representation among Latinos/Hispanics (11 percent), black/
African-Americans (7 percent) and Asians/Pacific Islanders (5 percent).
While the majority of buyers in America are married, single buyers (23 percent) and households
of unmarried partners (10 percent) comprise more than one-quarter of the marketplace.
Millennials, ages 18-34, comprise 42 percent of all home buyers today, while an additional
31 percent of buyers are members of Generation X (ages 35-49). Baby Boomers (ages 50-
64) and the Silent Generation (ages 65-75) together make up the smallest share of home
buyers (26 percent), with only 10 percent of buyers over age 64.
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 12
B-1: TODAY'S HOME BUYER
Median age is
Median income is
36
35%
female
GENDER
65%
male
$87.5K
Silent Gen 10%
Baby Boomers
16%
75%
White
2%
5%
11%
Latino/Hispanic
7%
Black/African-
American
Gen X
Millennials
31%
42%
Other
Asian/Pacific Islander
67%
MARITAL
STATUS
77% of all buyers are married or partnered
23%
10%
Unmarried partners
37%
EDUCATION
25%
11%
75% of all buyers have a college degree
13%
14%
High school or less
Some college
Two-year degree
Married
Four-year degree
Single
Graduate degree
CONSUMER HOUSING TRENDS REPORT 2016

13 | BUYERS
NEARLY HALF BUYING
FOR THE FIRST TIME
First-time buyers, a group that makes up
almost half (47 percent) of the buying
market, have a median age of 33 and nearly
six in 10 are Millennials (56 percent). They
spend a median of $200,000 on a home.
They are more likely than repeat buyers to
be torn between buying and renting, with
almost four in 10 seriously considering
renting (37 percent, compared to just 12
percent of repeat buyers).
Repeat buyers are older, with a median age
of 42. They have a preference for singlefamily
homes over other home types, and
pay an average of 18 percent more than
first-timers for their home ($235,000
median price). Repeat buyers are slightly
less decisive about location, with almost
one in five (18 percent) purchasing a home
in an area that is outside their initial search
criteria, compared to just 14 percent of
first-time buyers.
B-2: FIRST-TIME OR REPEAT BUYERS
35%
First-time buyers
19%
Repeat buyers:
purchased one home
47% of home buyers are fi
47%
irst-time
buyers
Repeat buyers:
purchased multiple homes
HOME SHOPPING A
SHARED PROJECT
Home shopping is a shared activity, with
86 percent co-shopping with a spouse or
partner (73 percent) or a friend or other
family members (13 percent). Half (50
percent) of buying households include
children under the age of 18, with one
quarter (25 percent) of all buyers indicating
their children had some influence on their
home purchase.
Seventeen percent of younger Millennials
(ages 18-24) are shopping for a home with
a friend or roommate, with an additional 51
percent shopping with a spouse or partner.
Older Millennials (ages 25-34), are more
like the average buyer, as 73 percent are
shopping with a spouse or partner.
B-3: CO-SHOPPING
13%
14%
86% of buyers co-shop
73%
With spouse or partner
With other family
or friend
On their own
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 14
TYPICAL HOME SEARCH TAKES
ABOUT FOUR MONTHS
Buyers spend 4.2 months on average shopping for a home.
The Silent Generation has the fastest search timeframe—
spending an average of 3.8 months, followed by Millennials,
who typically shop for four months. Baby Boomers spend
18 percent more time than Millennials on their home search,
averaging 4.9 months searching for a home to buy.
Along gender lines, men tend to shop faster than women.
Forty-seven percent of men but only 39 percent of women
report finding a home in less than three months. Women
need a little more time: 45 percent found a home within
three to six months, versus 38 percent of men.
4.2
months is the
average shopping
time for a home
MOST BUYERS DESIRE A
SINGLE-FAMILY HOUSE
A freestanding, single-family house is buyers’ top choice,
with 83 percent of all buyers seeking this home type. Buyers
also consider townhouses (20 percent), condominiums or
co-op dwellings (13 percent), duplex or triplex buildings (9
percent), or mobile or manufactured homes (8 percent).
Fifteen percent of buyers sought raw land or an empty lot.
B-4: TYPES OF HOMES CONSIDERED
83%
of buyers are looking for
single-family homes
for townhouses
for condos or
co-op housing
for duplex or
triplex buildings
20% 13% 9% 8%
for mobile or
manufactured homes
CONSUMER HOUSING TRENDS REPORT 2016

15 | BUYERS
B-5: HOME BUYING BY REGION
Single-family homes dominate the landscape.
MIDWEST
Midwestern buyers are the most
likely to consider manufactured
or mobile homes.
WEST
Western buyers also more likely to
consider condos, townhouses and
attached homes.
SOUTHWEST
The Southwest has the
highest percentage of
buyers looking for
single-family homes.
TOTAL
MIDWEST
NORTHEAST
SOUTHWEST
SINGLE-FAMILY HOME
83%
84%
82%
89%
TOWNHOUSE
20%
18%
23%
13%
CONDO/CO-OP
13%
13%
15%
7%
DUPLEX/TRIPLEX
9%
8%
14%
7%
MANUFACTURED/MOBILE HOME
8%
10%
5%
8%
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 16
NORTHEAST
Buyers in the Southwest are the most likely to seek a
single-family home, with 89 percent in the market for one.
Compared to buyers in other regions, buyers in the Northeast
are more likely to consider homes with shared walls, including
townhouses (23 percent), condos/co-ops (15 percent) and
duplexes/triplexes (14 percent). Buyers in the Midwest (10
percent) and Southeast (9 percent) are slightly more likely
than other Americans to consider manufactured homes.
Housing by generation:
Northeastern buyers are
the most likely to consider
townhouses, condos or
duplex/triplex properties.
• Millennials are housing-flexible. They’re the most likely
to look at townhouses (23 percent) or duplex/triplex
properties (13 percent).
• Generation X buyers are the least interested in condos
and co-ops. They mostly consider single-family homes
(85 percent) followed by townhouses (17 percent).
• Baby Boomers show the highest willingness to buy
manufactured housing (10 percent) and some interest in
condominium or co-op homes (14 percent).
• Silent Generation buyers are less interested in
single-family homes and among the most receptive
to yard-free living in a condo/co-op (23 percent) or
townhouse (21 percent).
SOUTHEAST
Southeastern buying
trends most closely match
the national average.
SOUTHEAST WEST
84%
82%
18%
23%
13%
13%
7%
10%
DISTRESSED PROPERTIES AN OPTION
FOR THE BUDGET-CONSCIOUS
Distressed properties, including foreclosure, auction and
short sale homes, remain fairly common in today’s real
estate market, and roughly two in five buyers are open to
purchasing these types of homes. Thirty percent of buyers
consider purchasing a foreclosure, with women more likely
to consider than men (32 percent versus 29 percent). In
contrast, men are more likely to consider purchasing an
auction home (18 percent versus 14 percent). Additionally, 28
percent of buyers consider purchasing a short sale—a home
listed by a seller who owes more on their mortgage than the
home can fetch.
9%
8%
CONSUMER HOUSING TRENDS REPORT 2016

17 | BUYERS
BRAND-NEW HOMES A POPULAR CONSIDERATION
Nearly half (48 percent) of all buyers consider homes that have never been lived in before.
Younger buyers (50 percent of Millennials and 54 percent of Generation X) are significantly
more likely than Baby Boomers or the Silent Generation (38 percent and 39 percent,
respectively) to consider newly built properties. Additional cohorts showing a greater desire
for brand-new homes include men (51 percent versus 44 percent of women), families with
kids (55 percent versus 42 percent of households without kids), and those earning more
than $75,000 (56 percent versus 40 percent of those earning less than $75,000).
Among buyers who were interested in and ultimately purchased brand-new homes, the
following information is most desired during their search:
• Energy-efficiency savings (48 percent)
• Builder reviews/ratings (47 percent)
• Options for customizing the home (45 percent)
• Inventory of a community, including when a lot becomes available (44 percent)
Additional information desired by buyers of brand-new homes includes options for interior
designs and finishes (41 percent) and community amenities such as playgrounds, fitness
rooms and pools (37 percent).
B-6: CONSIDERED BRAND-NEW HOMES
Younger buyers are more likely to consider new homes.
70
60
50
48
50
54
40
38 39
30
20
10
0% 0
Total
Millennials
(18-34)
Gen X
(35-49)
Baby
Boomers
(50-64)
Silent Gen
(65-75)
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 18
B-7: ALSO CONSIDERED RENTING
As buyers age, their interest in renting declines.
MANY BUYERS
CONSIDER RENTING
48%
ALL BUYERS
28%
23%
52% of buyers considered renting
While searching for a home, more than
half of all home buyers (52 percent) also
considered renting, with almost one quarter
(23 percent) looking at the option seriously.
Thirty-seven percent of first-time buyers
seriously consider continuing to rent, and
12 percent of repeat buyers are seriously
contemplating renting their next home
instead of buying it.
Among generations, younger Millennial buyers
(71 percent) are the most likely to consider
renting. As buyers age, their interest in
renting declines. Just over half (54 percent)
of all Generation X buyers considered renting,
around one-third (32 percent) of Baby
Boomers did, and only 18 percent of those 65
years and older looked at it.
Yes–seriously considered renting
Yes–thought about renting, but
was more serious about buying
BY GENERATION
100
No–did not consider renting
Men (55 percent) expressed more willingness
to rent than women (45 percent), and also
indicated more often than women that they
seriously looked at renting (28 percent for
men, 15 percent for women). Renting was also
a common consideration among buyers in
lower-income brackets.
90
80
70
60
50
40
30
20
10
0%
34
34
32
Millennials
(18-34)
46
25
29
Gen X
(35-49)
68
6
26
Baby
Boomers
(50-64)
82
5
13
Silent
Gen
(65-75)
"Among generations,
younger Millennial
buyers (71 percent)
are the most likely
to consider renting.
As buyers age, their
interest in renting
declines."
CONSUMER HOUSING TRENDS REPORT 2016

19 | BUYERS
SEARCHING & SHOPPING
RESOURCES
"...buyers who
utilize online
resources during
their home search
are significantly
more likely to also
use an agent."
ONLINE RESOURCES AND AGENTS
TOP THE LIST
The majority of buyers rely on both online resources
and guidance from a real estate agent during their
home search. Eighty-seven percent of buyers use online
resources and 75 percent select a real estate agent
or broker to work with, suggesting that most buyers
combine self-directed research using websites and apps
with the market expertise and human touch offered by a
real estate professional. In fact, buyers who utilize online
resources during their home search are significantly more
likely to also use an agent (77 percent versus 59 percent
who do not use online resources).
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 20
B-8: TOP RESOURCES USED TO SEARCH, SHOP OR PURCHASE
Most buyers combine online research with market expertise from an agent.
100
100
90
90
80
80
87
70
70
75
60
60
64
50
50
51
40
40
30
30
40
39
20
20
26
10
10
0%
0%
Online
resource
Real estate
agent/broker
For sale or
open house sign
Friends, relative
or neighbor
Home builder/
sales center
Print ad
Direct mail
Additional resources utilized by buyers
during their home search include for
sale and open house signs (64 percent
of buyers) as well as referrals from
friends and family (51 percent). Buyers,
particularly those considering homes that
haven't been lived in before, often rely on
sales centers and new home development
offices as a resource (40 percent). Print
ads (39 percent) and direct mail (26) are
the least used resources.
CONSUMER HOUSING TRENDS REPORT 2016

21 | BUYERS
BUYERS USE MULTIPLE DEVICES
TO ACCESS ONLINE RESOURCES
Buyers using online resources during their home search
are accessing them from a variety of devices, most often
desktop computers (77 percent), followed by mobile
websites (56 percent) and mobile apps (48 percent).
Utilizing mobile devices to search for homes is most
prevalent among buyers under age 50, with 66 percent of
Millennial buyers and 62 percent of Generation X buyers
accessing via mobile, compared to 42 percent of Baby
Boomers and just 20 percent of the Silent Generation.
In addition to searching online and using agents, Millennials
rely on their personal networks. They’re the generation most
likely to turn to a friend, neighbor, or relative to inform their
home search (58 percent, versus 52 percent of Generation
X buyers, 42 percent of Baby Boomers, and 37 percent of
the Silent Generation). They’re also more likely than older
generations to visit a builder’s sales center and slightly more
likely to consider direct mail a resource.
B-9: DIGITAL RESOURCES
77%
use desktop
or laptop
56%
use mobile web
48%
use apps
B-10: ONLINE RESEARCH BY GENERATION–ALL DEVICES
100
90 90
80 80
87
91
90
84
70 70
71
60 60
50 50
40 40
30 30
20 20
10 10
0% 0%
Total
Buyers
Millennials
(18-34)
Gen X
(35-49)
Baby Boomers
(50-64)
Slient Gen
(65-75)
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 22
USE OF AGENTS VARIES BY
GENERATION & ETHNIC GROUP
The older the buyer, the more likely that buyer is using
an agent. Baby Boomers and the Silent Generation
rely most heavily on an agent or broker for real estate
guidance, with 83 percent and 81 percent respectively
citing them as a resource in their home search. Seventyfour
percent of Generation X buyers report using an
agent, followed by 70 percent of Millennials.
Although use of agents is relatively high among all racial
and ethnic backgrounds, Asian/Pacific Islanders are
most likely to use an agent (82 percent) compared to
Caucasians and Latinos/Hispanics (76 percent and 71
percent, respectively). Black/African-American buyers are
the least likely to use an agent (68 percent).
Other demographic groups more likely to use an agent
include women (78 percent versus 73 percent of men)
and those earning more than $75,000 (77 percent versus
61 percent among those earning less than $25,000).
Additionally, repeat buyers are more likely to use an
agent than first-timers, with 78 percent of repeat buyers
hiring one versus 70 percent of first-timers.
HALF OF BUYERS ENLIST AN
AGENT AT THE START
Just over half (51 percent) of buyers who use an agent
involve them at the very beginning of their home search.
Forty-one percent get started on their own, choosing to
enlist an agent before they make an offer. This includes
27 percent who involve an agent after they have been
searching for a while but before they tour any homes, and
14 percent who enlist an agent after they have started
touring, but before starting the offer process. Baby
Boomers are more likely than other generations to begin
touring homes independently before selecting an agent,
with 19 percent of this generation doing so.
"Just over half (51
percent) of buyers
who use an agent
involve them at the
very beginning of
their home search."
Just 7 percent of total buyers who use an agent wait until
they’re ready to make an offer before enlisting their services.
CONSUMER HOUSING TRENDS REPORT 2016

23 | BUYERS
BUYERS CONSIDER AT
LEAST TWO AGENTS
The average number of agents buyers consider hiring is 2.2.
Slightly more than half (53 percent) of buyers using an agent
considered multiple agents, with 26 percent choosing from
two. There are marked differences among the number of
agents considered when it comes to the generational cohorts.
Sixty-eight percent of the Silent Generation and 57 percent
of Baby Boomers considered only one agent, compared to
44 percent of Generation X and 38 percent of Millennials
considering just one agent.
While 33 percent of buyers find an agent via referrals, nearly
that many—26 percent—are finding an agent online. Only
3 percent of buyers find their agent through newspaper
ads, and 2 percent find them through direct mail such as
postcards or newsletters.
Millennial and Generation X buyers are more likely to
find their agent online, with 29 percent and 27 percent
respectively finding an agent through this resource. Just 20
percent of Baby Boomer and 17 percent of Silent Generation
buyers use the internet to find their agent.
53%
evaluate more
than one agent
Millennials
evaluate more
Silent Gen
evaluate fewer
B-11 BUYERS WHO CONSIDERED MORE THAN ONE AGENT
The younger the buyer, the more likely they are to consider multiple agents.
70
70
60
60
62
50
50
53
56
40
40
43
30
30
32
20
20
10
10
0%
0%
Total buyers
using an agent
Millennials
(18-34)
Gen X
(35-49)
Baby Boomers
(50-64)
Silent Gen
(65-75)
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 24
B-12: HOW BUYERS FIND AN AGENT
Referrals and online are the most common ways buyers find an agent.
100
100
90
90
5 5
2 3
3
3
6
6
4
3
2
6
7 7
2
1
3
5
80
80
7 5
7
9
10
7
9
7
9
7
70
70
4
10
8 11
14
60
60
13
50
50
26 29 27
17
40
40
20
30
30
20
20
33
31 32 33
39
Other
Direct mail
Newspaper ad
Saw info on sign
10
10
Know from
community
Met at open house
Past experience
with agent
Online
0%
0%
Referral
Total Buyers
using an agent
Millennials
(18-34)
Gen X
(35-49)
Baby Boomers
(50-64)
Silent Gen
(65-75)
CONSUMER HOUSING TRENDS REPORT 2016

25 | BUYERS
BUYERS EXPECT
FAST RESPONSE
TO INITIAL
INQUIRY
The older the buyer, the
faster they expect an agent
to respond to their initial
inquiry. Over half of Silent
Generation buyers (52
percent) expect agents to
get back to them within
a few hours, versus 47
percent of Baby Boomers,
40 percent of Generation X
buyers and 40 percent of
Millennials.
B-13: EXPECTED RESPONSE TIME—INITIAL INQUIRY
36%
78% expect a response within 24 hours
TOTAL
BUYERS
30%
Among all buyers, 78
percent expect a response
within one day. Only
22 percent consider it
acceptable for an agent to
take two or more days to
respond.
22% expect a response within 2+ days
17%
4% 1%
12%
Less than an hour Within a few hours Within a day
Within 2-3 days Within a week Longer than a week
LOCAL MARKET KNOWLEDGE AND A
POSITIVE FIRST IMPRESSION ARE KEY
Buyers scrutinize prospective agents in multiple ways, including:
• Evaluating an agent’s local market knowledge
(60 percent)
• Reviewing brokerage websites (58 percent)
• Asking friends and family about experiences with an
agent (56 percent)
• Reading online agent reviews (50 percent)
• Reviewing agents’ sales histories (46 percent)
• Interviewing agents (44 percent)
Millennials are particularly likely to evaluate an agent online,
including reading online reviews (61 percent) and delving into
past sales data (57 percent).
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 26
B-14: HOW BUYERS EVALUATE AN AGENT
Most buyers combine online research with market expertise from an agent.
TOTAL BUYERS
70
60
50
60
58
56
50
40
46
44
30
20
10
0%
Evaluate market
knowledge/how well
they know area
Visit
brokerage
website
Ask a friend or family
member about their
experience with agent
Read online reviews
Look up past
sales history
Interview
agent
FIRST-TIME VS. REPEAT BUYERS
63 61 58
62 56
46
FIRST-TIME
Evaluate market knowledge/
how well they know area
58 53
Ask a friend or family member
about their experience with agent
REPEAT
Visit brokerage website
Read online reviews Look up past sales history Interview agent
58
41
41
39
First-time buyers in
particular devote
considerable effort
evaluating potential
agents. These buyers
are much more likely to
read online reviews (62
percent versus repeat
buyers at 41 percent),
check an agent’s sales
history (56 percent
versus repeat buyers
at 39 percent), and
ask friends and family
about an agent (61
percent versus repeat
buyers at 53 percent).
CONSUMER HOUSING TRENDS REPORT 2016

27 | BUYERS
B-15: IMPORTANT FACTORS WHEN SELECTING AN AGENT
Agent responsiveness, trustworthiness and local market knowledge are key criteria.
100
100
90
90
88 87
84 84
80
80
84
80
81
85
88
82 82
79
83
87
85
70
70
71
72 72
70
68
60
50
63 64 46 47
58
40
40
30
30
20
10
0
0%
Initial impression:
Initial impression:
responsive
responsive
Initial Initial impression:
trustworthy
Has Has local
market knowledge
market Positive general
reputation in
in
community
community
Strong sales
history/numbers of
recent sales
recent sales
Ultimately, buyers’ first impressions and confidence in an agent’s local market knowledge
are the most important factors in their decision to hire a particular agent. More than 80
percent of buyers chose these traits as top determining factors in choosing an agent,
viewing them as more important than an agent’s recent sales results, a personal referral, or
being a part of a recognizable brokerage.
Regionally, being part of a recognizable brokerage is of particular importance to buyers in
the Northeast (59 percent versus a 52 percent average for other U.S. regions). Buyers in the
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 28
Total buyers who
used an agent
Millennials (18-34)
Gen X (35-49)
Baby Boomers
(50-64)
Silent Gen (65-75)
55
58
60
50
51
61
56
53 53
56
60
49
53 53
50
43
42
41
45
47
37
35
35 36
25
Referral from friend,
Referral from friend,
relative, neighbor
relative,
or colleague
neighbor
or colleague
Online reviews
Online reviews
of agent
of agent
Is part of recognizable
Is part of a
brokerage
recognizable
brokerage
Past personal
experience with agent
Past personal
experience with
agent
Agent Agent is is
part of team
part of team
West place more importance on having a referral from a friend or relative (61 percent versus
a 54 percent average for other U.S. regions) and checking online agent reviews (56 percent
versus a 50 percent average for other U.S. regions).
Regarding first impressions, buyers prioritized both trustworthiness and responsiveness as
traits they’re looking for when first meeting an agent. Women in particular value these two
traits as top criteria when selecting an agent (88 percent for each, versus 81 percent and 83
percent, respectively, for men).
CONSUMER HOUSING TRENDS REPORT 2016

29 | BUYERS
PREFERRED
COMMUNICATION IS
VIA PHONE CALL
When it comes to regular communication
with an agent, one-third of all buyers prefer
phone calls, while in-person meetings
appeal to just over a quarter of buyers (27
percent) and are of particular interest to
the Silent Generation (41 percent versus
an average of 25 percent for younger
generations). Baby Boomer buyers (25
percent) show the highest preference
for email interaction, while Millennial and
Generation X buyers are slightly more
amenable to texting (Millennials 16 percent,
Generation X 18 percent).
B-16: PREFERRED METHOD OF COMMUNICATION WITH AGENT
One-third of all buyers prefer phone calls.
PHONE PHONE
PHONE
E-MAIL EMAIL E-MAIL
33% 25%
33%
31% 30% 31% 33% 32% 33% 38% 38% 33% 34% 33% MEET MEET IN IN 25% 24% 25% 25% 25% 26% 23% 23% 41% 41% 41%
21%
21%
MEET IN
PERSON
PERSON
27%
15%
21% 22% 21% 20% 21% 20% 26% 25% 26% 16% 16% 16% 16% 17% 17% 18% 11% 11% 12% 9% 9% 9%
TEXT TEXT MESSAGE
16%
VIDEO VIDEO CHAT
CHAT
5%
4%
7% 7% 4% 4% 2% 1% 2% NA 0% NA
Total buyers who
used an agent
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 30
B-17: IMPORTANCE OF AGENT SERVICES
Buyers seek to understand an agent's local market knowledge above all else.
80
80
70
72
Total buyers who
used an agent
First-time buyers
60
60
67
62
61
Repeat buyers
50
50
58
54
47
40
44
40
30
20
34
36
32 31
34
28
25
27
24
10
0%
Takes me on private
home tours
Alert me to
new homes
Preview homes
for me
Refer me to
an inspector
Send me listings just
outside my criteria
Refer me to
a lender
HOME TOURS RANK AS TOP SERVICE
The top service buyers want from their agents is private home tours (67 percent). They’re
also depending on agents for notifications about new homes on the market (58 percent)
and pre-screening homes (44 percent). Additionally, buyers ask agents for referrals to home
inspectors (34 percent) and mortgage lenders (25 percent), and even to provide listings that
fall outside their expressed buying criteria (31 percent).
First-time buyers prefer seeing homes in person (62 percent) to having them previewed
by an agent (40 percent), and are more interested in inspector referrals and seeing listings
outside their initial search criteria. Repeat buyers are more receptive to agents previewing
homes for them (47 percent) but still appreciate in-person tours (72 percent).
Silent Generation buyers (78 percent) expect agents to give them private home tours,
compared to 66 percent for younger generations. Across racial and ethnic lines, Asians/
Pacific Islanders and whites/Caucasians also place high value on private home tours (71
percent and 69 percent, respectively, versus 60 percent for Latinos/Hispanics and 58
percent for blacks/African-Americans).
Women more often care about private home tours (72 percent of women, 65 percent of
men) and getting information on new listings from their agent (63 percent of women, 56
percent of men), while men are more open to having an agent screen properties (48 percent
of men, 37 percent of women).
CONSUMER HOUSING TRENDS REPORT 2016

31 | THE BUYERS MANY FACES OF HOMEOWNERSHIP
SNAPSHOT
THE MANY FACES OF
HOMEOWNERSHIP
Owning a home is fundamental to the American Dream and is a goal shared
by Americans of all racial and ethnic backgrounds. While people of color are
traditionally under-represented compared to the population as a whole, that is
gradually changing as younger, more diverse buyers enter the market.
More than three out of four homeowners today (77 percent) are Caucasian, while
less than 10 percent are black/African-American (9 percent) or Latino/Hispanic (9
percent). Just 5 percent of today’s owners are Asian or Pacific Islanders.
Caucasians make up 75 percent of recent buyers, which is a slightly smaller share
than long-term homeowners. Eleven percent of recent buyers are Latino/Hispanic,
but only 7 percent are black/African-American. Asians/Pacific Islanders account for 5
percent of recent buyers.
For comparison, 15 percent of the U.S. population is Hispanic, according to the U.S.
Census Bureau, and 65.5 percent is white. ii
YOUNG BUYERS INTRODUCE DIVERSITY
Millennial buyers are more likely to be Hispanic/Latino than their older counterparts.
Generation X buyers include the largest percentage of non-white buyers, compared
to other generations.
Non-whites and Millennials are more likely to associate homeownership with the
American Dream, according to the Zillow Housing Confidence Index. Of Hispanic
respondents to a 2016 survey, 70 percent agreed that owning their own home is
necessary to live the American Dream, followed by 64 percent of Asian/Pacific
Islander respondents and 63 percent of black respondents. By comparison, only 58
percent of white respondents agreed.
Fourteen percent of Millennial buyers are Latino/Hispanic, whereas roughly 11
percent of Gen X, 7 percent of Baby Boomers and 6 percent of Silent Generation
buyers are Latino/Hispanic. Some 6 percent of Millennials are black/African-
American, a smaller share than Gen X (9 percent) or Boomer (8 percent) buyers who
are black/African-American.
CONSUMER HOUSING TRENDS REPORT 2016

THE MANY FACES OF HOMEOWNERSHIP BUYERS | 32
DIVERSITY AMONG
MILLENNIAL HOMEOWNERS
ALL HOMEOWNERS
77%
White
1%
Other
5%
9%
Latino/
Hispanic
9%
Black/African-
American
Asian/Pacific Islander
MILLENNIALS
66%
White
7%
17%
Latino/
Hispanic
10%
Black/African-
American
Asian/Pacific Islander
FIRST-TIME BUYERS AND OWNERS ARE DIVERSE
Non-white buyers make up a slightly higher
share of first-time buyers than repeat buyers.
Homeowners who are not white are more likely to
be in the first home they ever purchased: Twentynine
percent of first-time owners are of a racial
background other than Caucasian, whereas only 17
percent of repeat owners are non-white.
CONSUMER HOUSING TRENDS REPORT 2016

33 | BUYERS
HOME SELECTION &
PURCHASING FACTORS
"For today’s
buyer, it’s
become
the norm to
make more
than one
offer before
succeeding
in closing on
a purchase."
IN-PERSON TOURS ARE PARAMOUNT
When determining which homes to consider purchasing, home buyers
place importance on a variety of methods, including:
• Taking a private tour of the home (78 percent)
• Having an inspection/pre-inspection (78 percent)
• Having access to comprehensive data and history about the home
(67 percent)
• Viewing a floor plan of the home (64 percent)
• Getting their agent’s evaluation of the home (54 percent)
• Viewing professional pictures of the home (52 percent)
• Having the home empty/free of the previous seller’s belongings
(51 percent)
• Attending an open house of the home (48 percent)
• Watching a video tour of the home (35 percent)
• Having the home be staged (33 percent)
Each of these methods is more important to Millennial and Generation
X buyers compared to buyers over age 50. Private tours, having an
inspection, and getting access to comprehensive data about the home are
nearly equally desired among the age cohorts.
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 34
B-18: AVERAGE NUMBER OF
HOME SEARCH ACTIVITES
Once their search is underway, the average buyer visits
about seven homes. They attend an average of three open
houses and go on an average of four private home tours.
HOME
TOURS
OPEN
HOUSES
OFFERS
MADE
AVERAGE #
The majority (71 percent) of all buyers attend at least one open
house, with first-time buyers (77 percent) more likely than
4.1 97% 24% 4.1
repeat buyers (65 percent) to attend at least one open house.
Buyers in the Northeast (77 percent) and West (76 percent)
are the most likely to attend at least one open house.
97% 96% 99% 99% 22% 25% 27% 20% 4 4 4.6 3
Women and Southwesterners tend to take an average of
one additional private tour, averaging five private tours each,
versus four for men and residents of other U.S. regions.
4 4 4.6 3.8
For today’s buyers, it’s become the norm to make more than
2.77%
16% 2.7
one offer before succeeding in closing on a purchase. Just
under half (46 percent) of all buyers successfully close on
their first home offer, with one-quarter (24 percent) making
80% 78% 58% 41% three or more offers. 16% Those 18% more 15% likely 7% to close on their 2.8 first 2.9 2.1 1
offer include women (55 percent versus 40 percent for men),
the Silent Generation (56 percent versus an average of 45
percent for younger generations) and those without kids in
2.2 100%
the household (52 percent
8%
versus 40 percent for those with
2.2
kids). Those who most often make five or more offers before
closing on a purchase include buyers in the West (9 percent)
and Northeast (8 percent), those purchasing duplexes or
100% 100% 100%
triplexes
100%
(12 percent) or
8%
brand-new
8% 2%
homes
6%
(10 percent).
2.2 2.2 1.8
2.8 2.9 2.1 1.1
2.2 2.2 1.8 2
Total Buyers
Gen X (35-49)
Silent Gen (65-75)
HOME
INSPECTIONS
91%
Millennials (18-34)
Baby Boomers (50-64)
88% 92% 89% 82%
6%
8% 7% 2% 3%
1.7
1.9 1.9 1.2
CONSUMER HOUSING TRENDS REPORT 2016

35 | BUYERS
B-19: AMENITIES OF A HOME —WHAT DRIVES HOME SELECTION
Affordability and location in a safe neighborhood top the list.
0% 10 20 30 40 50 60 70
MOST IMPORTANT
Is within my budget
In a safe neighborhood
Has a floor plan/layout that fits my needs
Has my preferred number of bedrooms
Close to job/school
In my preferred neighborhood
Has my preferred size/square footage
In my preferred school district
Is move-in ready
Has air conditioning
Has private outdoor space
Close to family/friends
Is energy efficient
Has my preferred finishes
Has my preferred number of bathrooms
Close to shopping/services/leisure activities
Has good natural light
Offers off-street parking/garage
Has a view
Has ample storage
Close to transit
LEAST IMPORTANT
Offers shared community amenities
AFFORDABILITY AND SAFETY ARE MOST IMPORTANT
By far, the top two traits most likely to drive selection of a specific home are its
affordability and location in a safe neighborhood. When it comes to interior features of a
home, buyers tend to prioritize usability and space: Having a floor plan or layout that meets
their needs is just as important as having their preferred size/square footage.
Buyers also appreciate a home that is move-in ready and has air conditioning (especially
in the South) over having their preferred finishes. Having a view or ample storage are the
interior features that are least likely to have an impact on home selection.
Buyers also seek homes in locations that offer a good work commute and are within their
preferred neighborhood. These location-based factors are all big drivers of home selection
for both Millennials and Generation X, and are often more important than being close to
friends and family, or shopping. Location-based features with the least impact on driving
home selection include being close to transit or offering shared community amenities.
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 36
SINGLE-FAMILY
HOMES ARE
PREDOMINANT CHOICE
B-20: TYPE OF HOME CHOSEN
Most home buyers are looking for a singlefamily
detached house (83 percent), and
indeed most buyers end up purchasing
this type of home (78 percent). Millennials
and the Silent Generation are slightly more
likely than those ages 35-64 to consider
townhouses (23 percent and 21 percent,
respectively), with half of all who consider
townhouses purchasing one.
Single-Family Home
Townhouse
PURCHASED CONSIDERED
78% 83%
10% 20%
CONDOS APPEAL TO
YOUNG AND OLD
Thirteen percent of buyers considered
condos/co-ops, with 5 percent purchasing
one. Condo buyers report that they chose
this type of home because a condo is
the best choice at this stage of their life
(44 percent), it’s the right size for them
(41 percent), and because the condo is in
their desired location (40 percent).
Condo/Co-op
Duplex/Triplex
5%
4%
Manufactured/
Mobile Home
4%
13%
9%
8%
B-21: REASONS FOR CHOOSING A CONDO
50
40
44
41
40
30
32
30
27
20
18
10
12 12 11
0%
The best
choice
at this stage
in my life
The right size
for me/my
family
In my desired
location
Less
maintenance
than owning
another type
of home
Appealing
home layout
Lower cost
than owning
another type
of home
Access to
shared
amenities
Is secure
Reputation
of building
Has an
elevator
CONSUMER HOUSING TRENDS REPORT 2016

37 | BUYERS
THE TYPICAL
HOME PURCHASED
3 bedrooms
2.5 bathrooms
Median sq. ft. = 1,900
Median price = $222,000
TYPICAL HOME PURCHASE
The median home purchased today has 1,900 square feet
and features three bedrooms, 2.2 full bathrooms and one
partial bathroom. The Silent Generation and Millennials
are buying homes with slightly smaller footprints, with a
median size of 1,700 square feet and 1,800 square feet,
respectively. Generation X and Baby Boomer buyers are
choosing slightly larger homes of 2,000 and 1,950 square
feet, respectively.
The median price of a home is $222,000. First-time
buyers are paying a median price of $200,000 on a new
home—just 18 percent less than repeat buyers, who spend
$235,000 on their home—indicating that first-time buyers
are stretching their resources to afford a starter home they
can stay in for awhile.
Generation X buyers spend a median of $245,000, which is
the most of any generation. Boomers are spending the least
amount of money on homes—a median of only $200,000.
One-third of buyers exceed
their initial budget when
buying a home (32 percent),
and nearly half of all buyers
of brand-new homes
pay north of budget (48
percent). First-time buyers
are more likely to exceed
their budget (39 percent)
than repeat buyers (26
percent). Those who are
pre-approved (34 percent),
Millennials (37 percent) and
residents of Western states
(39 percent) pay above
budget slightly more often
than their counterparts.
B-22: PRICE OF HOME VS. INITIAL BUDGET
Millennials exceed their budget slightly more often.
100
90
24 27
33
30
80
37
70
60
50
61
58
40 56
58
53
30
20
Higher than initial budget
10
12 11 11
18 15
About the same as initial budget
Lower than initial budget
0%
Total Total
Buyers
Millenials
Millennials
(18-34)
Gen Gen-x X
(35-54) (35-49)
Baby Baby Boomers
(55-64) (50-64)
Silent Seniors Gen
(65-75) (65+)
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 38
B-23: HOME IMPROVEMENTS
Fifty-seven percent of buyers made major repairs to the home they bought.
90
Major renovation
80
70
80
84
80
77
Minor renovation
60
67
68
50
57
58
40
45
30
38
20
10
0%
Total
Total
Buyers
Millennials
(18-34)
(18-34)
Gen-X
X
(35-49)
(35-54)
Baby Boomers
(50-64)
(55-64)
Seniors
Silent Gen
(65-75)
(65+)
TOTAL BUYERS
MILLENNIALS
GEN X
BABY BOOMERS
SILENT GEN
MAJOR IMPROVEMENT/RENOVATION
BY BUYER
53%
45%
53%
69%
76%
BY SELLER
52%
60%
52%
35%
31%
MINOR IMPROVEMENTS
BY BUYER
73%
69%
74%
75%
84%
BY SELLER
34%
37%
33%
34%
22%
Almost six in 10 buyers (57 percent) say they made major repairs to a property they
bought—with about half making the repairs themselves and half arranging for the seller to
make repairs as a condition of the sale.
Younger buyers were more likely to request that the seller do repairs on the home they were
buying. Six in 10 Millennial buyers asked the seller to make the major repairs, compared to 52
percent of Gen X buyers, 35 percent of Baby Boomers and 31 percent of the Silent Generation.
CONSUMER HOUSING TRENDS REPORT 2016

39 | BUYERS
B-24: REASONS FOR PURCHASING BRAND-NEW HOME
Repeat buyers list location, newness and customization as the most the appealing factors.
40
40
37
37
37
37
36
36
35
34
30
33
30
32
28
33
31
28
28
28
32
31
30
28
30
28
31
29 29 29 29 29 27
29
28 28
28
27
27
26
26
26
24 25
26
25
24
20
20
21
10
10
0
0%
0
The home was
affordable
The In home In a a desirable was
location
In Everything a desirable in the in home the Everything is Ability Ability in to the customize
Ability Appealing to home
location home new/never is new/ used home customize features is new/ of features my home customize home features
never used never of used my home of my home
Appealing Free Free upgrades
home features offered by builder
Free Ability upgr
my fl
VALUE AND LOCATION TOP REASONS TO
SEEK A BRAND-NEW HOME
Just 10 percent of buyers iii end up selecting a home that hasn't been lived in before. When
asked why they sought out newly built properties, these buyers cited reasons including
affordability (35 percent), being in a desirable location (31 percent), having appealing home
features (29 percent), ability to customize features of the home (28 percent), and free upgrade
options (24 percent). Millennials are significantly more likely than older buyers to purchase a
brand-new home for its curb appeal (19 percent).
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 40
Total buyers
First-time buyers
Repeat buyers
27
25
24
24
24
22
23
22
23
22
22
22
21
20
18
17
19 18
17
16
15 15
13
ades
Ability to select to select
my my floor floorplan
Reputation Homebuilder of
homebuilder
No one has lived lived in in
it it before
Cash Cash discount discount offered
by builder
Access to shared
community community amenities
amenities
Curb-appeal
of
of home exterior
Additional appealing features of these brand-new homes include having a choice of floor
plans (24 percent), receiving cash discounts from builders (20 percent), and access to
community amenities such as a pool or playground (17 percent).
One caveat for buyers of brand-new homes: Those bidding on newly built homes were
among those most likely to make three or more offers before successfully closing (30
percent did, versus 23 percent of existing home buyers).
CONSUMER HOUSING TRENDS REPORT 2016

41 | BUYERS
MOST BUYERS
LEAVE NEIGHBORHOOD
More than 40 percent of those who move
are relocating to a different city, although
87 percent of all buyers are staying in the
same state. Only 17 percent move within the
same neighborhood.
B-25: DISTANCE BUYERS MOVE
41%
45%
Couples are more likely than single-home
buyers to stay in their current state (82
percent versus 76 percent).
While only 11 percent of buyers are moving
out of state, it’s notable that older buyers
are more likely to make these long distance
moves. While just 7 percent of both Millennials
and Generation X are moving across state
lines, Baby Boomers and the Silent Generation
make such moves 20 percent and 29 percent
of the time, respectively.
28%
17%
ALL BUYERS
1%
11%
1%
87% of buyers stay in the same state
29%
17%
Same neighborhood
Same state,
different city
Moved out of country
Same city, different
neighborhood
Same country,
different state
BY GENERATION
100
1
1
7
7
90
80
28 27 28
BY FAMILY TYPE
1 100
2 2 1
1
2
67
16
11
11
20 18
90 13
17
21
29
80
27
70
60
32 33
70
60
21
20
32
35
32 30
50
35 37
50
40
46 45
46 45
40
39
42 35
46
42 37
30
35 36
30
20
26
20
10
0% 0
19 18
19 18
12
7
10
0% 0
17
12 14
19
14 16
Millennials
(18-34)
Gen X
(35-49)
Baby
Boomers
(50-64)
Silent Gen
(65-75)
Single
Couple
Kids in
household
No kids in
household
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 42
B-26: PART OF A COMMUNITY
WITH SHARED AMENITIES
ALL
BUYERS
48% 52%
Is part of a community
Is not part of a community
REGIONS WHERE COMMUNITIES SHARE AMENITIES
WEST HAS
THE MOST WITH
MIDWEST HAS THE
LEAST WITH
54% 40%
WHO BUYS IN COMMUNITIES WITH SHARED AMENITIES:
Just under half of buyers (48 percent)
bought a house in a community with
shared amenities, with Millennials and
the Silent Generation leading the way (54
percent and 50 percent, respectively)
over Generation X (47 percent) and Baby
Boomers (35 percent).
COUPLE
FAMILY
FAMILY SINGLE COUPLE
SINGLE
FAMILY
COUPLE
FAMILY
6% 54% 53% 40% 46% 42% 40% 38% 54% 46% 54%
CONSUMER HOUSING TRENDS REPORT 2016

43 | BUYERS
FINANCING & LENDER
DECISIONS
PRE-APPROVAL NOW
COMMONPLACE
Getting pre-approved early in the buying
process has become more commonplace.
Eighty-two percent of buyers get preapproved,
with 77 percent getting this
pre-approval from a lender before finding
a home on which they are interested in
placing an offer. An additional 5 percent
of buyers applied to get pre-approved but
were denied, and 13 percent did not apply
for pre-approval at all.
B-27: WHO GETS PRE-APPROVED
87% of buyers have applied for pre-approval
TOTAL BUYERS
82%
Millennials, Generation X and buyers who
engage agents early in the shopping process
are more likely than their counterparts to
get pre-approved.
5%
13%
Applied and
accepted
Applied and
not accepted
Did not apply
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 44
FINANCIAL TOOLS A HELPFUL FIRST STEP
Buyers model their financing options with the help of online mortgage calculators (62
percent) as well as comparison shop for lower interest rates online (67 percent). Fiftyfour
percent of those who seek pre-approval do so online and 51 percent of home buyers
apply for their final mortgage using an online application. Millennials are the most likely
generation to use an online mortgage application (56 percent).
B-28: USE OF ONLINE FINANCIAL RESOURCES
Millennials are the most likely to apply for a mortgage online.
80
80
Total Buyers
Millennials (18-34)
Gen X (35-49)
70
70
67
70
69
68 68
69
Baby Boomers (50-64)
Silent Gen (65-75)
60
60
67
67
67
67
67
58
50
50
56
70
54
56
53
54
51
56
51
40
40
67
54
30
30
56
33
31
20
20
10
10
0
0%
Compare
interest rates
Use a mortgage
calculator
Compare different
loan options
Apply for
pre-approval
Apply for
a mortgage
CONSUMER HOUSING TRENDS REPORT 2016

45 | BUYERS
MAJORITY OF BUYERS
GET A MORTGAGE
Buying a home is a major investment, and
77 percent of all home buyers use a
mortgage loan to finance a home purchase,
meaning they make a down payment for a
portion of the home’s value and then borrow
the remaining money needed to purchase the
property at the agreed-upon sale price.
Buyers in Generation X (82 percent) are
the most likely to finance their home with
a mortgage, while Millennials (78 percent),
Baby Boomers (72 percent) and the Silent
Generation (68 percent) are slightly less
likely to finance their home with a mortgage.
Only 23 percent of all buyers bought their
home without mortgage financing. Those
more likely to have paid cash include singles
(41 percent) and families without children in
the household (27 percent, compared to 18
percent of those with children).
B-29: MORTGAGE VS. PAID CASH
Got a mortgage
23%
77
TOTAL BUYERS
% of buyers get a mortgage
77%
Paid cash
BY GENERATION
100
BY HOUSEHOLD TYPE
100
90
80
22
18
28
32
90
80
41
24
18
27
70
70
60
78
82
60
82
50
40
72
68
50
40
59
76
73
30
30
20
20
10
10
0% 0
Millennials Millenials
(18-34)
Gen-x X
(35-49)
Baby Boomers
(50-64)
Seniors Silent
(65+) Gen
(65-75)
0% 0
Single Couple
Family Kids in No Kids kids in HH in No Kids
household household in HH
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 46
Over half of home buyers (56 percent) save up the old-fashioned way, by socking away cash
over time, in order to buy a home. Even so, almost a third (32 percent) rely on two or more
sources of cash for their down payment.
Among all buyers, just under one in five received financial gifts (17 percent), sold securities (15
percent), withdrew from retirement funds (14 percent), or took personal loans from family or
friends (11 percent) to generate a down payment.
First-time buyers are more likely to finance a home purchase with a mortgage (84 percent),
while repeat buyers are slightly less likely (71 percent) to finance their purchase. First-time
buyers more often received money as a gift from a family member or friend, with 25 percent
using gifted funds as a down payment; otherwise, they too (59 percent) saved the
old-fashioned way.
B-30: SOURCE OF DOWN PAYMENT
70
Total Buyers
60
50
56 58 60
49
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
40
44
30
31
28 27
17
20
10
0% 0
26
24
21
18
9
8
11
16
12
4
2
15
18
14
14
15 14 13
10 11
6 6
4 4
10 11
I I saved up for
it it over time
From the sale of
my previous home
Gift from a
family member
or friend
Loan from a
family member
or friend
Sold stocks or
other investments
Used my
retirement fund
Other
25%
of first-time buyers
received a financial
gift to help with
their down payment.
Households with children
are more likely to receive
gifts and loans from
family or friends.
CONSUMER HOUSING TRENDS REPORT 2016

47 | BUYERS
ONE LENDER FOR
BOTH PRE-APPROVAL
AND MORTGAGE
When it comes to finding a lender, 90
percent of buyers used the same lender
for both pre-approval and a final mortgage
loan. Buyers who got mortgages turned to
their agents and the internet to investigate
financing options.
B-31: SAME PROVIDER AS PRE-APPROVAL
90% of buyers use the same lender for pre-approval and loan
90%
Sixty-nine percent of buyers used referrals
from an agent or other trusted person to
find a lender, while 69 percent of buyers said
they consulted online resources, including
search engines (46 percent), real estate sites
(43 percent), and personal finance sites (45
percent). Millennial buyers and those in the
Northeast and West, as well as households
with children, were slightly more likely to use
online resources to locate a lender.
10%
Same lender
Different lender
B-32: RESOURCES USED TO FIND A LENDER
ONLINE
RESOURCES
69%
76% 73% 57% 40%
FINANCIAL
INSTITUTIONS
73%
74% 72% 74% 68%
REFERRALS
69%
73% 69% 66% 56%
DIRECT
MAIL
27%
35% 27% 17% 9%
NEWPAPER
ADS
25%
32% 28% 14% 6%
OTHER
19%
24% 15% 14% 14%
Total buyers who
got a mortgage
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64) Silent Gen (65-75)
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 48
B-33: COMMUNICATION WITH LENDERS
Baby Boomers and the Silent Generation prefer talking with lenders via phone.
PHONE
MEET IN
PERSON
SMS
SECURE MESSAGE
SYSTEM
32%
28% 30% 39% 47%
25%
24% 25% 27% 26%
5%
6% 5% 2% 3%
E-MAIL
TEXT MESSAGE
VIDEO CHAT
28%
29% 30% 23% 24%
7%
10% 7% 3% 0%
4%
4% 3% 5% 0%
Buyers consider live
dialogue an important part
of the borrowing process,
preferring to hold financing
discussions by phone call
(32 percent) or meeting in
person (25 percent) over
messages via email (28
percent) or text (7 percent),
with Baby Boomers and
the Silent Generation, in
particular, preferring a
phone call. Millennials were
slightly more receptive (10
percent) to texting than
older generations.
Total buyers who
got a mortgage
Millennials
(18-34)
Gen X
(35-49)
Baby Boomers
(50-64)
Silent Gen
(65-75)
B-34: NUMBER OF LENDERS CONTACTED
18% 29%
Buyers contact an average
of two lenders when
researching home financing
options. Older buyers are
the most likely to contact
just one lender, mirroring
their behavior with hiring
an agent.
15%
AVERAGE # OF
LENDERS CONTACTED:
2.3
38%
1 lender
2 lenders
3 lenders
4+lenders
CONSUMER HOUSING TRENDS REPORT 2016

49 | BUYERS
B-35: IMPORTANT ATTRIBUTES WHEN SELECTING A LENDER
Meeting terms, having the lowest rates and being responsive are most important for buyers.
100
100
90
90
86
80
80
70
70
81
79
81
81
79
78
80
78
76
77
76
80
73
80
74
75
72 71
69
60
60
58
59
62
50
50
54
40
40
42
30
30
20
20
10
10
0
0%
Was Willing willing to work to work
with with me to meet
my terms
my terms
Had Had the lowest the rates
lowest rates
Initial impression of
of lender:
responsive
responsive
Has the best best
mortgage mortgage products
products
Is Is a well-known/ known/
national company
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 50
Total buyers who
got a mortgage
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
55
58 57
49
54
58
56
53
52 52
49 48
48
49
46
44
43
44
40
36
35
Past personal
experience with with
lender
lender
Has Has a location
near me
Is a Is local a local company
company
Already had a financial
financial account account with lender there
Buyers consider a lender’s willingness to work with the buyer to meet their terms as the
most important factor (81 percent) when deciding where to obtain a mortgage loan. Also
important are offering the best loan rates (79 percent) and being responsive (77 percent).
These traits were more important to buyers than a lender’s affiliation with a well-known or
national-brand lending company (58 percent).
CONSUMER HOUSING TRENDS REPORT 2016

51 | THE BUYERS MULTIFACETED MILLENNIAL
THE
MULTIFACETED
MILLENNIAL
Millennials, those ages 18-34, account for 42 percent of today’s
home buyers, which is more than any other generation. Members
of this large demographic, who grew up in a digital age and
entered adulthood during the housing recession, approach home
buying and selling with financial savviness and caution.
In many ways, Millennials take a less traditional approach to
home shopping—they prefer to begin the process online and
are more willing to consider renting instead of buying than
older generations.
That said, Millennials' aspirations about homeownership
often mirror the more conservative view of their parents
or grandparents. They believe in the power of a home as a
financial investment just as much as older generations do,
put more weight in online reviews of agents and lenders, and
remain incredibly loyal to the professionals and peers that
helped them through the process.
CONSUMER HOUSING TRENDS REPORT 2016

THE MULTIFACETED MILLENNIAL BUYERS | 52
CONSUMER HOUSING TRENDS REPORT 2016

53 | THE BUYERS MULTIFACETED MILLENNIAL
CONSUMER HOUSING TRENDS REPORT 2016

THE MULTIFACETED MILLENNIAL BUYERS | 54
IMPORTANCE OF HOME AND
COMMUNITY
Unlike older generations, Millennials under 25 are the most likely to
see their home as a reflection of themselves rather than a financial
investment. Millennials are also the generation that is most communityminded,
with more than half (55 percent) characterizing themselves as
involved in their neighborhood and other local surroundings.
Millennials, affluent or otherwise, are delaying many life milestones that
precede homeownership, such as completing their education, getting
married or starting families, and thus are renting deeper into adulthood.
Two-thirds of Millennial buyers (66 percent) concurrently consider
renting while shopping for a new home, with one in three Millennials
seriously considering it (34 percent).
When Millennials do become homeowners, they leapfrog the
traditional “starter home” and jump into the higher end of the
market by choosing larger properties with higher prices, similar to
homes bought by older buyers. They pay a median price of $217,000
for a home—more than Baby Boomers, and just 11 percent less than
Generation X. The Millennial median home size is 1,800 square feet,
similar in size to what older generations buy.
NOT JUST URBAN DWELLERS
It’s a common myth that all Millennials are short-term buyers seeking
homes in trendy, urban neighborhoods. In reality, just one quarter
of Millennial homeowners live in an urban area. Nearly half of all
Millennials live in suburban communities, with eight in 10 adults
under 25 living outside an urban core.
More than half of all Millennial buyers (54 percent) purchase a home
within a community that has shared amenities—a feature found in
newer neighborhoods as well as larger condo complexes or buildings.
CONSUMER HOUSING TRENDS REPORT 2016

55 | THE BUYERS MULTIFACETED MILLENNIAL
THE IMPACT OF
TECHNOLOGY
Millennials comprise a disproportionately
high share of first-time home buyers, but
they make up for their inexperience with
research. Millennials use more resources to
educate themselves and research agents
and lending professionals more than any
other generation.
This generation is very familiar with online
resources and uses them. Nine out of 10
turn to the internet and eight in 10 use
mobile devices or apps to help with the
home-buying process. On average, Millennial
buyers and sellers use at least three online
resources; one in four (28 percent) use five or
more online resources. They also turn to the
internet to model financial scenarios, with
more than two out of three Millennial buyers
who have a mortgage using interest rate and
affordability tools and mortgage calculators.
Millennials also contact more agents—at
least two when buying, at least three when
selling—than any other generation. Millennials
look online for authentic information about
experiences from peers, as evidenced by more
than six in 10 reading agent reviews before
choosing an agent.
CONVERSATIONS
MATTER
While Millennials lean heavily on technology
to gather information early in the buying or
selling process, it doesn’t replace important
conversations. And though Millennials are
accustomed to texting, that’s not their favorite
way to interact with agents or lenders.
Millennial buyers prefer talking to their agent
on the phone (30 percent), with fewer than
one in six (16 percent) preferring to text with
their agent. One in four (24 percent) likes
meeting their agent in person, a preference
mirroring Baby Boomer consumers.
With lenders, Millennial buyers prefer phone
calls. One quarter (24 percent) of Millennials
like meeting with their lender in person, also
resembling older generations. Only one in
10 Millennials wants to text with a lender—
meaning that when it comes to real estate,
they only favor texting slightly more than
Generation X (7 percent prefer texting).
THE VALUE OF
EXPERTISE
Although Millennials are more likely to
rely on online resources, they also greatly
value professional advice. The majority of
Millennials work with agents, although by a
smaller margin than older generations. When
they enlist an agent they do so earlier in the
home-search process, shop for a home faster
than most older generations, and are more
likely to stay in touch with an agent—and
refer their agent to friends—than members of
any other generation.
When they find a professional they trust,
Millennials are extremely loyal. More
than half (55 percent) of Millennials have
recommended their agent to others, and
more than one quarter (26 percent) have left
an online review of their agent. In addition,
40 percent stay in touch with their agent,
turning to a real estate professional for home
improvement advice almost twice as often
as Generation X and more often than other
older owners.
CONSUMER HOUSING TRENDS REPORT 2016

THE MULTIFACETED MILLENNIAL BUYERS | 56
CONSUMER HOUSING TRENDS REPORT 2016

57 | BUYERS
2
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 58
TODAY’S
HOME SELLER
The majority of today’s home sellers are listing a home for the first time
and are usually embarking on the process amid a life change, such as a job
change, divorce or becoming an empty nester. Millennial and Generation X
sellers are looking for more space, while older sellers are often downsizing.
On average, sellers upgrade with an additional 100 square feet and a 11
percent more expensive home.
Eighty-eight percent of sellers rely on a real estate agent to guide them
through the sale, and 83 percent make sale-related improvements or
renovations—a strategy that pays off with an offer above list price. When
selecting an agent, sellers rate local market knowledge and responsiveness
as top considerations.
CONSUMER HOUSING TRENDS REPORT 2016

59 | SELLERS
SELLER CHARACTERISTICS
& CONSIDERATIONS
"A quarter of
home sellers
are Millennials
(26 percent)."
SELLERS ARE EDUCATED, MARRIED
AND NEW TO SELLING
The typical home seller is most often college-educated (79 percent),
married (71 percent), with a median age of 41 and a median household
income of $87,500. Eight in 10 (80 percent) are selling a single-family
home, 9 percent are selling a townhouse, with the remaining sellers
looking to sell a condo/co-op (4 percent), duplex/triplex (4 percent) or a
manufactured/mobile home (2 percent).
In terms of diversity, nearly three-quarters of all sellers (72 percent) are
Caucasian, with Latinos/Hispanics representing nearly 11 percent of sellers.
Nine percent of sellers are black/African-American, and 6 percent are
Asians/Pacific Islanders.
The biggest group of home sellers belongs to Generation X (38 percent).
A quarter of home sellers are Millennials (26 percent). Eighteen percent of
sellers are Baby Boomers, and 19 percent are from the Silent Generation.
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 60
S-1: TODAY'S HOME SELLER
Median age is
Median income is
41
32%
female
GENDER
68%
male
$87.5K
Silent Gen 19%
72%
White
2%
6%
11%
Latino/Hispanic
9%
Black/African
American
-
Baby Boomers
Gen X
Millennials
18%
38%
26%
Other
Asian/Pacific Islander
76% of all sellers are married or partnered
5%
23%
74% of all sellers are married or partnered
MARITAL
STATUS
71%
39%
EDUCATION
28%
9%
79 % of all buyers have a college degree
12%
12%
High school or less
Some college
Married
Unmarried partners
Single
Two-year degree
Four-year degree
Graduate degree
CONSUMER HOUSING TRENDS REPORT 2016

61 | SELLERS
MOST ARE
FIRST-TIME SELLERS
The majority (63 percent) of people putting
homes on the market are doing so for the
first time. Twenty percent report having
sold one home previously, and an additional
17 percent indicated they have sold multiple
homes. First-time sellers have a median age
of 36, while repeat sellers are older, with a
median age of 60.
S-2: FIRST-TIME OR REPEAT SELLERS
20%
37% are repeat sellers
17%
63%
First-time seller
Repeat seller:
sold one home
Repeat seller:
sold multiple homes
HOME SELLING A
SHARED ROLE
Sellers aren’t in it alone: most are sharing
the role of selling. Eight out of 10 sellers are
sharing the role of selling with at least one
other individual, including a spouse/partner
(61 percent), roommate or friend (22 percent),
or another family member (15 percent).
S-3: CO-SELLING
81% sell with another
80% share selling role with another person
19%
61%
erson
20%
Couple
Roommate, friend
or family
Sell alone
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 62
LIFE EVENTS OFTEN
A TRIGGER
The decision to sell a home is generally
prefaced by at least one of several life
events that happen during the 24 months
leading up to a sale. These most often
include job changes and promotions
(26 percent), shifts in financial status
(24 percent), retirement (16 percent), or
changes to the number of people in a
household due to a birth, death, marriage,
divorce, becoming empty nesters, or
other factors.
S-4: KEY LIFE EVENTS EXPERIENCED IN LAST TWO YEARS
Events such as switching jobs or changing household size often influence the decision to sell.
30
26
24
20
16
14
10
11
10
9
0%
Change
in job
Change in
financial
status
Retirement
Increase in size
of household
Change in
school status
Change in
marital status
Decrease in
size of
household
CONSUMER HOUSING TRENDS REPORT 2016

63 | SELLERS
S-5: HOMES SOLD VS. HOMES PURCHASED
SOLD
MILLENNIALS
Median square footage
Home sold
Home purchased
2,000 +107 2,107
Median sales price
Home sold
Home purchased
$222,221 +$11,879 $234,100
BABY BOOMERS
Median square footage
Home sold
Home purchased
2,100 +0 2,100
Median sales price
Home sold
Home purchased
$235,000 +$15,000 $250,000
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 64
MANY ARE ALSO BUYING
Many sellers are also likely to have the
additional challenge of looking to purchase
their next home. More than eight in 10
sellers (80 percent) moved to a home they
purchased. Generation X (85 percent) and
Millennials (83 percent) are the most likely to
be “dual trackers”—both selling and buying—
with 73 percent of Baby Boomers and 74
percent of the Silent Generation also buying.
GEN X
Median square footage
Home sold
Home purchased
1,800 +381 2,181
Median sales price
Home sold
Home purchased
$225,625 +$24,375 $250,000
SILENT GEN
Median square footage
Home sold
Home purchased
2,100 -300 1,800
These dual-track buyers and sellers typically
elect to list their previous home as their first
step. Some sellers wait until they accept an
offer on this home, while others embark on
their search for a new home to buy as their
next step. Once their previous home closes,
most sellers extend an offer on a new home,
ultimately completing their process by
having their offer accepted and closing on
the sale of their new home.
Sellers are typically exiting their current
home and upgrading to a larger or betterfinished
space. Among those buying a new
place, they’re typically purchasing a home
with an additional 100 square feet (from
1,900 square feet sold to 2,000 square
feet bought) that costs about 11 percent or
$25,560 more than the home they listed.
Generation X and Millennial buyers in
particular are seeking more space—23
percent and 25 percent more square footage.
Baby Boomer buyers largely remain in the
same size home, while the Silent Generation
tends to downsize to a smaller home,
reducing by an average of 220 square feet.
Median sales price
Home sold
Home purchased
$220,000 +$30,000 $250,000
CONSUMER HOUSING TRENDS REPORT 2016

65 | SELLERS
LISTING & SELLING
PROCESS
THE TYPICAL
HOME SOLD
3 bedrooms
2.5 bathrooms
Median square
feet = 1,900
Median sales
price = $224,440
THE AVERAGE HOME FOR SALE
The typical home for sale today is a 1,900-square-foot house, with 3.1
bedrooms and two full bathrooms, one half bathroom, and a median sales
price of $224,440. Most properties sold are single-family houses (80
percent), followed by townhouses (9 percent), condos/co-ops (4 percent),
and duplex/triplexes (4 percent).
Homes sold over the past year vary significantly by region. The typical
home in the Midwest and Northeast is about 10 years older than the typical
home in the rest of the country. The Northeast—with a disproportionate
share of condos and co-ops—has some of the smaller homes in the country,
with a median size of 1,680 square feet.
Homes sold in the West (typically 1,730 square feet) and Midwest (with a
median size of 1,900 square feet) are slightly larger. Homes for sale in the
Southeast and Southwest are typically among the largest in the country
(with a median size of 1,987 and 2,000 square feet, respectively). They
vary significantly on price, as well. Homes in the West carry the highest
median sales prices ($275,000), while homes in the Midwest are the least
expensive ($195,000).
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 66
S-6: TIMELINE OF SELLER ACTIVITIES
Most sellers who also buy start by listing their previous home for sale, followed by shopping for a new home to buy.
63%
ranked 1st
or 2nd
52% 61% 66%
ranked 3rd
or 4th
ranked 4th
or 5th
ranked 5th
or 6th
80%
ranked 1st
57%
ranked 1st
or 2nd
S-7: MEDIAN SALE PRICE BY REGION
$240,000
$275,000
$200,000
$195,000
$214,000
Homes in the
West have
the highest
sales price
Homes in the
Midwest have
the lowest
sales price
CONSUMER HOUSING TRENDS REPORT 2016

67 | SELLERS
S-8: TYPE OF HOME SOLD BY GENERATION
Baby Boomers are much more likely to be selling a single-family home.
Single-Family Home
80%
77% 79% 87% 79%
Condo/Co-op
4%
4%
4%
5%
6%
Townhouse
9%
13% 11% 4% 7%
Manufactured/
Mobile Home
2%
1%
3%
2%
4%
Duplex/Triplex
4%
4%
4%
1%
4%
Total Sellers Millennials (18-34) Gen X (35-49)
Baby Boomers (50-64) Silent Gen (65-75)
Along racial and ethnic lines, Latinos/
Hispanics have the highest median sales
prices at $250,000, compared to Asians/
Pacific Islanders at $236,640, $225,000
for Caucasians, and $200,000 for blacks/
African-Americans. Latinos/Hispanics tend to
sell homes with a larger footprint than other
groups, with an average square footage
of 2,100. Blacks/African-Americans sell
homes with an average square footage of
1,950, compared to 1,940 for Asians/Pacific
Islanders, and 1,800 for Caucasians.
Baby Boomers tend to sell the largest
homes, with a median square footage of
2,100 square feet, which is 200 square feet
larger than the typical home sold. They are
also the most likely generation to be selling
a single-family home (87 percent). One
in five Millennial sellers (20 percent) have
been living in a footprint of less than 750
square feet, compared to only 12 percent of
Generation X sellers and virtually no Baby
Boomers (1 percent) or Silent Generation (3
percent) sellers. Millennials are also more
likely than older generations to be selling a
townhouse (13 percent).
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 68
DECIDING TO SELL TAKES NEARLY FIVE MONTHS
Sellers consider putting their home on the market for 5 months on average before they
list it. Millennials spend the least time planning to sell (average of 3.7 months) while Baby
Boomers (6.5) and the Silent Generation (6.1 months) spend significantly longer deciding.
Women spend more than five weeks longer considering selling than men (5.9 months
versus 4.6 months). Sellers who closed above listing price tended to be people who spent
less time deliberating (2.4 weeks less than average) about whether or when to put a home
on the market.
S-9: LENGTH OF TIME CONSIDERED SELLING BEFORE LISTING
50
40
40
Total Sellers
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
30
32
33
28
29
27
20
24
25
21
22
20
18
20
23
20
19
17
15
16 15
10
10
12
11
8
5
0
0%
Less than
two months
2-3 months 4-6 months 7-12 months Over a year
BY GENDER
35
Less than 2 months
2-3 months
4-6 months
MALE
8
13
11
19
26
FEMALE
14
14
21
23
27
7-12 months
Over a year
CONSUMER HOUSING TRENDS REPORT 2016

69 | SELLERS
HOME IMPROVEMENTS ARE FIRST STEP
Most sellers spend money to make money, investing in an average of 3.1 improvements
to their property before listing. More than eight out of 10 sellers (83 percent) make
improvements or renovations to prepare their home for sale. The most common repairs
include painting the interior or exterior of the house (45 percent), renovating the bathroom
(31 percent), bolstering curb appeal (27 percent), landscaping (24 percent), and adding new
carpeting or flooring (26 percent).
Repair efforts varied by household composition, with more than a quarter (28 percent)
of single sellers making no improvements, versus 23 percent of couples and 11 percent of
families opting not to make changes to their property.
S-10: PRE-SALE RENOVATIONS BY GENERATION
Millennials are more likely than other generations to make major home improvements.
50
47
48
45
40
42
40
39
38
36
34
30
31
31
29
29
29
32
27
26
25
27
25
25
26 26 26
24
26
27
27
20
21
19
20
19
23
20 20
21
17
15
15
10
12
0%
NET: Painting
Painting
renovations
renovations
NET: Bathroom
Bathroom
renovations
renovations
NET: Kitchen
Kitchen
renovations
renovations
Improved curb
Improved curb
appeal
appeal
New carpet/
New carpet/
flooring
flooring
Landscaped
Landscaped
yard
yard
Redecorated
Redecorated
Home/Rooms
home/rooms
New/rep
roof
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 70
Generationally speaking, Millennials were much more likely (92 percent) than Baby Boomers
(75 percent) and the Silent Generation (72 percent) to make major home improvements
to spur a sale, including labor-intensive tasks such as finishing basements (18 percent),
renovating bathrooms (38 percent) and changing a home’s overall floor plan (14 percent).
Baby Boomers and the Silent Generation are the generations least likely to make any major
improvements to a home to prepare the home for sale: More than 25 percent of older
owners opted out of making home improvements, whereas 13 percent of Gen X and 8
percent of Millennials owners made none. Instead, Baby Boomers and the Silent Generation
are choosing to make improvements over the course of owning their home, making updates
predominately to meet their style preferences.
Total Sellers
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
29
25
20 20
19
18
18
11
16
16
16
17
15
14
11
10
6
15
14
15
14
8
6
4
15
17
15
12
14
13
9
7
11
4
17
14
13 13
12
12
10
8
9
6
14
13
12
11 10
10
7
5
9
11
15
14
10 10
8
11
15
10
11 1% NA
0%
aired orated
Rooms
Updated New/repaired plumbing
New/repaired
roof
roof
Updated Finished plumbing
Updated
basement
plumbing
Updated Finished or
Finished
repaired basement electrical
basement
Replaced Updated or repaired or None Replaced of the or above repaired
Updated or Replaced or
furnace/heater
repaired electrical furnace/heater
repaired electrical repaired
furnace/heater
None Modified of the above
Modified
floor plan
floor plan
Modified
floor plan
CONSUMER HOUSING TRENDS REPORT 2016

71 | SELLERS
S-11: TASKS COMPLETED TO READY FOR LISTING
Millennials are more likely to have a video made and promote their listing on social media.
100
100
90
90
80
70 60
71
78
80
70
60 70
62
60
58
58
58
50
54
50
54
55
54
40
49
38
40
45
39
38
44
48
45
45
39
38
43
45
39
45
30
20
30
20
29
29 28
26 26 26
23 23
19
28 29
26 26 26
25
25
24
19
25
23
28
26
26
24
19
25
26
10
10
14
0%
photos taken
my homes
0%
Promoted Had photos my taken
listing
on real of my estate homes
sites
Promoted Had photos Had my my an listing taken on
on real of inspection my estate homes sites sites
Promoted Had Had a video my an an listing
taken on real inspection
of estate my home sites
Promoted Had Had a my video an listing on Promoted Created Created Had a my print video print listing ads on Promoted Created Promoted my print listing my on
social taken networking inspection of of my home sitessocial taken ads of networking of my my home
home sites social ads listing networking of my on home social sites
networking sites
Creat
ads of
"Sellers conduct an average of
three activities connected to their
home’s listing, some of which are
at an agent’s recommendation or
part of their services."
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 72
Total Sellers
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
23
24
24
20
26
17
19
21
13
9
15
20
17
10
6
12
18
16
6
12
16
15
9
6
2
Had Had my my
home staged
Rented Rented a storage a storage unit
unit for for my my personal
belongings
Had Had a floorplan a created plan created of my home of
my home
Had Had drone footage
taken of of my home
Had Had other media
taken taken of my of my home
home
GETTING READY TO LIST
Sellers complete an average of three activities connected to their home’s listing, some of
which are at an agent’s recommendation or part of their services. These most often include
photographing the home (62 percent), promoting the listing on real estate sites (45 percent),
and conducting a pre-inspection (45 percent) to help with pricing and predict queries from
buyers about home issues.
The younger the seller, the more interactive their marketing preferences. Millennials are
more likely to have video footage taken of their home (29 percent versus 23 percent of Baby
Boomers) and to promote their listing via social media sites like Facebook (28 percent versus
14 percent of Baby Boomers).
Silent Generation sellers are most likely to have photographs taken of their home (78 percent),
have their listing promoted on online real estate sites (54 percent), and have a pre-listing
inspection conducted (55 percent).
CONSUMER HOUSING TRENDS REPORT 2016

73 | SELLERS
ACTIVITIES WHILE ON THE MARKET
However well-laid the plan, the sale plot often has numerous twists and turns—failed offers,
market withdrawals, and price adjustments or negotiations. On average, it takes around three
months (2.8) from initial listing to closing on a home sale.
Sellers hold an average of two (1.9) open houses, pull their home off the market once (0.8),
receive between two and three offers (2.5), and see about one offer fall through.
In contrast, sellers who sell above list price are more likely to hold at least one open house,
take their home off the market once, and receive three or more offers (but typically see one or
two fall through). Sellers who sell above list price also typically complete more selling-related
renovations and improvements to their home. Given that local markets shift and change from
year to year, past selling experience is no guarantee that a homeowner will fetch above list
price: Only 47 percent of repeat sellers sell at or above list price, whereas 54 percent of firsttime
sellers did.
S-12: NUMBER OF TIMES SELLING ACTIVITIES OCCURRED
Sellers hold an average of two open houses and receive two to three offers.
HAD AN OPEN HOUSE
TEMPORARILY TOOK HOME OFF MARKET
31
28
68
AVG #: 1.9 AVG #: 0.8
13
9
19
4
18
3 7
RECEIVED AN OFFER FROM
A POTENTIAL BUYER
HAD AN OFFER FALL THROUGH
52
35
AVG #: 2.5
27
AVG #: 1.0
27
16
14
5
4
13
4+ times
3 times
2 times
1 times
8
0 times
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 74
S-13: NUMBER OF TIMES LIST PRICE CHANGED
100
90
80
70
60
50
40
8
10
21
27
10
12
24
26
5
6
16
30
Two-thirds (66 percent)
of sellers change their list
price at least once, but
less than half (39 percent)
change the price two or
more times. Millennials are
disproportionately likely (80
percent) to change their list
price at least once, while
Baby Boomer sellers are
the most likely to hold the
line on a listing price (46
percent made no change).
30
20
10
34
28
43
4+ times
3 times
2 times
1 time
0%
0 times
Total sellers
First-time sellers
Repeat sellers
GAUGING BUYER INTEREST
There are a variety of methods that sellers indicate are important ways to
gauge interest in their home while on the market. They include:
• Getting feedback about their home and what changes could be made
to potentially sell it faster or at a higher price (69 percent)
• Knowing how many people have contacted an agent about the home
(66 percent)
• Seeing how their home is performing compared to similar homes for
sale (65 percent)
• Knowing how many people have looked at their home online
(58 percent)
• Seeing how many people attended one of their open houses
(56 percent)
Millennials and Generation X sellers are more likely to place importance on
knowing how many people contacted their agent about their home (70
and 69 percent, versus 66 percent for Baby Boomers and 57 percent for
the Silent Generation).
CONSUMER HOUSING TRENDS REPORT 2016

75 | SELLERS
RATING THE SELLING EXPERIENCE
Selling a home is stressful for just over half of sellers,
regardless of whether or not they have been through the
process before. Both first-time sellers (52 percent) and
repeat sellers (57 percent) indicated that putting their
home on the market was challenging. And rightfully so—a
homeowner’s ability to fetch a desired sale price can have
a major impact on household finances and the financing of
the next home they may purchase.
Ultimately though, most sellers (73 percent) were satisfied
with the outcome of a sale transaction. Where they had
regrets, sellers indicated they wished they’d had more
time to prepare their home for sale (30 percent) or
worked with a different listing agent (16 percent).
S-14: TOP FIVE SELLER REGRETS
Actions sellers would have done if they could start the process over.
40
30
30
20
21
20
19
16
10
0%
Started preparing to
sell my home earlier
Taken more time to
find new home
Moved into my
home faster
Used an agent instead
of selling on my own
Chose a different
agent for selling
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 76
S-15: SELLING EXPERIENCE
Most sellers were left generally satisfied after their selling process.
AGREE WITH STATEMENT A
AGREE WITH STATEMENT B
It was my choice to
move/sell–I sell—I could could have stayed have
stayed in my previous in my previous home
home longer longer
66 34
I didn’t didn't have a choice to
ot sell—I move/sell–I had to sell had to
move/sell
The process of selling shopping my
home for/selling was challenging my home was &
stressful challenging & stressful
54
46
The process of selling shopping my
home for/selling was enjoyable my home & was
exciting enjoyable & exciting
My decision to buy/sell was
based was based on objective on objective
research & analysis
55 45
My decision to buy/sell was
was based based on my on subjective my
subjective gut feelinggut feeling
When selling my home, I
wanted to take the lead
and do it myself
36
64
When selling my home,
I wanted to rely on
guidance from
professionals
When When renting/buying/selling
my home, I was
my very home, visually I was oriented very visually and
oriented liked to and see liked lots of to pictures see lots
of pictures and maps and maps
50 50
When
When
renting/buying/selling
selling my home, I was
my
very
home,
data
I
oriented
was very
and
data
liked
oriented
lots of data
and
and
liked
information
lots of
data and information
Overall, I was
satisfied with the
process of selling my
home
73 27
I would do things differently
if I had to go through the
process of selling my home
again
100
90
80
70
60
50
40
30
20
10 0%
10 20 30 40 50 60 70 80 90 100
CONSUMER HOUSING TRENDS REPORT 2016

77 | SELLERS SELLING ABOVE LIST PRICE–WHAT WORKS
SNAPSHOT
SELLING ABOVE LIST
PRICE—WHAT WORKS
When it comes time to sell a home, every seller wants the same outcome: To sell quickly
for as much money as possible. Sellers who sold for at least 2 percent above list price
share several traits. They begin preparing both on their own and with a professional early
in the process, they tackle repairs or improvements to cater to prospective buyers, they
use a multimedia and digital-rich marketing approach, and they are more likely pull their
home off the market or hold multiple open houses.
THEY PLANNED AHEAD
Sellers start preparing to sell their home before officially listing by researching on the
internet, with nearly three in four (71 percent) turning to online resources such as real
estate websites (73 percent) or brokerage listing sites (40 percent). Seventy-three
percent reported using social networks, too.
They also use home pricing tools, with 66 percent turning to home price estimate tools,
requesting advice from agents or friends (63 percent) or even hiring an appraiser (31 percent).
THEY ENLISTED A TRUSTED AGENT
The vast majority (90 percent) of sellers who sell above list price work with an agent,
and two out of three such sellers (58 percent) begin working with an agent at the very
beginning of the sale process. Successful sellers vet their agent carefully, with 68 percent
saying they considered at least two different agents.
Nearly nine out of 10 sellers (86 percent) placed a heavy emphasis on their first
impression of the agent they were considering. Most also looked at an agent’s recent
sales (66 percent) and local reputation (73 percent) in evaluating whether the agent
could help them sell for top price.
CONSUMER HOUSING TRENDS REPORT 2016

SELLING ABOVE LIST PRICE–WHAT SELLERS WORKS | 78
THEY UPDATED THEIR HOME
Sellers who fetched above list price tackled
expensive and messy renovation projects before
selling, rather than passing them on to buyers. These
sellers were about 50 percent more likely to modify
an existing home plan or finish off a basement than
the average seller, and approximately 20 percent
more likely to renovate a kitchen or repair a roof.
They were 8 percent more likely to complete a
bathroom upgrade, too.
THEY UNDERSTOOD THAT ONLINE APPEAL
IS THE NEW CURB APPEAL
Sellers who sold for more than list price made
imagery and home information available across as
many internet media as possible in their quest to
market their home. Nearly half (48 percent) had
photos taken of their home, three in 10 shot video,
and many shared their listing on social media (28
percent), had their home professionally staged (26
percent), or shot drone footage (21 percent) or other
types of imagery (18 percent).
THEY AREN'T AFRAID TO TAKE CONTROL
Eight-two percent of sellers who ended up selling
over list price held at least one open house to
draw in potential buyers. That said, if their first
approach didn't draw the attention they were
desiring, these sellers weren't afraid to regroup and
try again. Twenty-six percent of those who sold
above list price took their home off the market once
(compared to 20 percent of all sellers) opting to
start anew rather than letting the home languish on
the market with minimal activity.
Not all sellers who fetched above list saw bidding
wars. One quarter (27 percent) got one offer and then
took it, while another quarter (24 percent) received
four offers or more. Almost all (86 percent) of abovelist
sellers went through a buyer’s inspection.
CONSUMER HOUSING TRENDS REPORT 2016

79 | SELLERS
RESEARCH & SELLING
RESOURCES
ONLINE RESOURCES AND AGENTS ARE KEY
The vast majority of sellers utilize both an agent and online resources to prepare for and
ultimately sell their home. Eighty-eight percent of sellers used an agent or broker, and 68
percent used one or more online resources. Additional resources include consulting with friends,
relatives or neighbors (49 percent), print ads (46 percent) and direct mail (37 percent).
USE OF RESOURCES VARIES BY AGE
Millennials show a strong preference for using agents (87 percent) and online resources
(88 percent) in nearly equal measure, which suggests they are relying on the expertise
of a professional in tandem with conducting their own research. Compared to other
generations, they are more likely to use mobile devices (73 percent) or apps (66 percent).
Millennials also place higher relevance on information from friends, neighbors and family
(72 percent) than older generations.
Generation X sellers are similar to their younger counterparts, with 87 percent using an
agent and 79 percent using online resources. They are likely to access online resources via
a variety of methods including mobile web (59 percent) and apps (54 percent). Personal
referrals from friends and neighbors are also fairly common (55 percent).
Baby Boomers are much more likely to defer to a real estate agent (93 percent) than use
online resources (55 percent) or information from friends and neighbors (33 percent).
Silent Generation sellers defer to an agent or broker (89 percent), doing a little online
research (32 percent), with less than one-third of them going to either mobile sources or
friends for information. Both Baby Boomers and the Silent Generation are less likely than
those under age 50 to utilize print ads (31 percent and 20 percent, respectively) or direct
mail (19 percent and 12 percent, respectively) during the process of selling their home.
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 80
S-16: RESOURCES USED TO SELL A HOME
Millennials are much more likely to use a variety of resources when selling.
100
Total Sellers
90
80
88 87 87
93
89
88
79
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
70
72
60
68
65
59
50
55
49
55
54
46
40
43
37
30
32
33
31
20
22
20
19
10
12
0
0%
Real estate agent
or broker
Online resources
Friend, relative
Print ad
Direct mail
or or neighbor
S-17: DIGITAL RESOURCES
64% 49% 44%
use desktop
or laptop
use mobile web
use apps
CONSUMER HOUSING TRENDS REPORT 2016

81 | SELLERS
S-18: WHEN SELLERS INVOLVE AN AGENT
69%
at the very beginning,
when they were just
starting the process
MAJORITY OF SELLERS
INVOLVE AN AGENT
FROM THE START
More than two-thirds of sellers who used an
agent (69 percent) chose to involve them
at the beginning of their sale planning
process. In fact, more sellers are likely to
involve an agent at the very beginning than
buyers (51 percent involve an agent at the
onset of buying). Remaining sellers choose
to involve an agent once they need specific
advice such as sale timing or listing price
(20 percent), with 11 percent waiting until
right before listing.
20%
when they needed specific
advice about selling
11%
when their home was
ready to be listed
SELLERS CONSIDER
AN AVERAGE OF
THREE AGENTS
Slightly more than half (51 percent) of
sellers using an agent consider multiple
agents, with 26 percent choosing from
two, and 25 percent considering three or
more. Similar to trends seen with buyers,
the likelihood to consider multiple agents
varies depending upon the age of the
seller. Sixty-four percent of Baby Boomers
consider only one agent, compared to
53 percent of the Silent Generation, 46
percent of Generation X, and just 38
percent of Millennials.
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 82
S-19: HOW SELLERS FIND AN AGENT
The most common methods for finding an agent include referrals and online.
100
90
80
100
90
80
5
4
4
7
2
4
6
10
4 5
5
6
5
5
15
10
3
2
7
70
70
14
13
13
2 1 13
5
60
60
8
8
7
13
22
50
50
17
13
17
40
40
19
30
30
18
24
16
17
15
Other
Direct mail
Newspaper ad
Saw info on sign
20
10
20
10
24
19
27 27
19
Know from
community
Met at open
house
Past experience
with agent
Online
Referral
0%
0%
Total TotalM sellers
who used an agent
Millennials
(18-34)
Gen X
(35-49)
Baby Boomers
(50-64)
Silent Seniors Gen
(65-75) (65+)
The most common ways that sellers find the agent they end up selecting are referrals
(24 percent), online sources (18 percent) or past experience with the agent (17 percent).
Millennials are most likely to find their agent via an online resource (24 percent), while
Generation X and Baby Boomers are most likely to find their agent via a referral (27 percent
for both).
Among sellers who are also buyers, repeat use of the same agent is fairly common. Fiftyfive
percent of these sellers used the same agent to assist with the sale of their previous
home and purchase of their new home. Those most likely to use the same agent for both
transactions are Millennials (72 percent) and Generation X sellers (69 percent), compared
to 52 percent of Baby Boomers and just 22 percent of the Silent Generation. Thirty-three
percent of sellers who also purchased a new home elected to use a different agent, and 12
percent elected to not use an agent for their new home purchase.
CONSUMER HOUSING TRENDS REPORT 2016

83 | SELLERS
LOCAL MARKET KNOWLEDGE AND A POSITIVE
FIRST IMPRESSION ARE VITAL
Similar to a buyer’s search for an agent, sellers seeking an agent go with their gut and
seek out someone whom they feel they can trust (82 percent), who possesses local market
expertise (84 percent) and who is responsive (82 percent). Additionally, sellers place weight
on an agent’s reputation in the neighborhood (74 percent), a recent track record of successful
sale closings (72 percent) and, to a lesser degree, online reviews (54 percent).
S-20: IMPORTANT ATTRIBUTES WHEN SELECTING AN AGENT
100
100
90
90
80
80
70
84
77
84
87
94
86
85
82 81
82
79
76
81
83
89
74 73
75
70
80
72
69
75 75
67
60
60
50
50
40
40
30
30
20
20
10
10
0%
0%
Has local market
Has knowledge
local market
knowledge
Initial impression
Initial
of
impression
agent:
of
agent: trustworthy trustworthy
Initial impression
Initial of agent: impression
of responsive
agent: responsive
Positive general
reputation Positive general in the
reputation community in the
community
Strong sales
history / number
Strong sales
of history/number
recent sales
of recent sales
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 84
Among generations, Millennials place more emphasis on an agent’s online presence while
those in the Silent Generation place more emphasis on an agent’s objective expertise
and brokerage brand. Millennials skew higher in evaluating online reviews (65 percent),
having an existing relationship with the agent (65 percent) and the agent being part of
a team (58 percent). Silent Generation sellers, however, place more emphasis on local
market knowledge (94 percent), responsiveness (89 percent) and affiliation with a wellknown
brokerage (75 percent).
Total sellers who
used an agent
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
75
73
63 62 61
55
54
65
61
58
65
61
60
56 56
63
55
58
53
63
50
44
45
46
38
35
Is part of a
recognizable
Is part of a
brokerage
recognizable
brokerage
Online reviews
Online
of the
reviews
agent
of the agent
Past personal
experience
Past personal
with
experience the agent with
the agent
Referral from
friend, relative,
Referral from
neighbor friend, or relative, colleague
neighbor or colleague
Agent is
part of a team
Agent is part
of a team
CONSUMER HOUSING TRENDS REPORT 2016

85 | SELLERS
S-21: IMPORTANCE OF AGENT SERVICES
The most important services are determining sales price, general selling advice and contract negotiation.
100
90
80
70
60
62
65
50
50
48
40
46
30
38
37
35 36 36 35 36 35 35
34
31
33
31
33
33
28
28
28
20
26
26
21
24
21
20
17
10
0%
Determining
sales price
General advice about
selling
Contract
negotiation
Taking photographs or
video of the home
Hosting an
open house
Determining where
to advertise/
list the home
HELP WITH LIST PRICE MOST VALUABLE SERVICE
Sellers most often said they value agents’ help and expertise with respect to home price
determination (50 percent) and sales contract negotiation (35 percent). They also turn to
their agent for general advice about the sale process (35 percent).
Millennials are more likely to indicate legal advice (26 percent) and determining when to
sell (23 percent) as being top services their agent provides. Among older sellers, more
than six in 10 sellers look to their agent to price their home correctly (62 percent of Baby
Boomers and 65 percent of the Silent Generation, compared to 46 percent of Generation
X and 38 percent of Millennials). Silent Generation sellers are also interested in having
their agent market their listing with graphically rich visuals including photos or videos (48
percent, versus approximately 30 percent for younger generations).
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 86
Total sellers who
used an agent
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
21
19
20
23
25
20
24
22
21
13
19
26
24
13
16
23
18
17
19
24
20
14
16
8
3
Home
improvement advice
Staging the
home
Legal advice
Determinig
when to sell
Hosting
private tours
Millennials
prioritize
legal advice
Boomers & Silent Gen
prioritize determining
sales price
Silent Gen prioritize
taking photographs
of the home
CONSUMER HOUSING TRENDS REPORT 2016

87 | SELLERS
WHAT AGENTS ARE PAID
When asked what percent commission agents were paid to sell their homes, most sellers
reported that the listing agent’s commission fell within the 3 to 6 percent range (76 percent
of sales). One in five paid a commission of 3 percent (22 percent), and only a minority of
transactions paid an agent 2 percent or less in commission (10 percent).
Generation X sellers skew toward agents getting paid a 2 to 3 percent commission (36
percent), while Millennials are more likely to pay a commission in the 4 to 5 percent range
(34 percent). Silent Generation sellers are most likely to pay a commission of 6 percent or
more (42 percent).
S-22: AGENT COMPENSATION
100
90
80
56 4
6
43 4
4
53 7
43
8
8 8
34
3
1
18
70
32 29
30
36
31 36
30
29
60
28 31
50
40
31
32
34
34 30
31
33 29
30
20
10
22 27
21
21 21
20
26
45 42
Don't remember
Not applicable–
other arrangement
1% or less
2-3%
4-5%
0
0%
Total Sellers
Millennials
(18-34)
Gen X
(35-49)
Baby Boomers
(50-64)
Silent Gen
(65-75)
6%+
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 88
S-23: NEGOTIATION
39% of
sellers negotiate with
33% of sellers negotiate with their agent
16%
No—I accepted the agent's terms
without negotiating
17%
the agent
67%
Yes—I tried but the agent's terms
did not change
Yes—I tried and some or all of the
agent's terms changed
Millennials are more likely to
negotiate terms with agents
MILLENNIALS
MOST LIKELY TO
NEGOTIATE
Agent commissions are
occasionally a point of
negotiation for sellers and
buyers. Most sellers (67
percent) are willing to work
on an agent’s terms and
accept the commission rate
from the get-go, while 33
percent try negotiating with
their agent. Among those
who attempt negotiation, just
under half (48 percent) are
successful in modifying some
or all of the agent’s terms.
The older the seller, the less
debate around commission.
The Silent Generation (72
percent) and Baby Boomers
(69 percent) are less likely
than younger sellers to
negotiate, while two out
of every five Millennials
(42 percent) negotiate.
However, sellers ages 50
and over are more likely
to be successful when
they do negotiate, with 62
percent of Baby Boomers
and 44 percent of the Silent
Generation succeeding
in changing agent terms,
compared to 39 percent of
Millennials.
Baby Boomers and Silent
Generation are less likely to try
to negotiate terms
CONSUMER HOUSING TRENDS REPORT 2016

89 | SELLERS
FSBO SELLERS
GOING IT ALONE
For Sale By Owner (FSBO) sellers who
never used an agent comprise just 12
percent of the sellers market. When
FSBO sellers opt out of working with an
agent, their motives are typically saving
money (61 percent)—presumably on
agent commissions—or time (37 percent).
Additionally, FSBO sellers are confident
they can successfully sell on their own
(36 percent), know prospective buyers
(32 percent), feel they know their home’s
attributes best (29 percent), or are opting
to represent themselves because of a past
negative agent experience (14 percent).
S-24: SELLERS WITHOUT AN AGENT
ALL SELLERS
12% of sellers FSBO
12%
I sold on my own and never
listed with an agent
I used an agent
88%
CONSUMER HOUSING TRENDS REPORT 2016

SELLERS | 90
S-25: REASONS FOR SELLING ON THEIR OWN
70
60
61
50
40
30
20
37 36
35
32
29
10
15
14
3
0% 0
To save
money
To save
time
Confident I could
sell without an
agent
I already knew
a potential a potential buyer
buyer
I knew my home
better than any
agent could
Negative experience
with an agent in in
the past
Other
S-26: RESOURCES USED TO
DETERMINE LIST PRICE
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0%
0%
53
Home
valuation
tool
51
Look up
comparable
homes for sale
in my area
38
Professional
appraisal
35
Advice
of agent
30
Advice from
family/friends
To determine their home’s list price, FSBO
sellers turn to experts and online tools.
These sellers may pay for a professional
appraisal (38 percent), and about one in
three take advice from a real estate agent
(35 percent) or friends and family (30
percent). More than half (53 percent) of
these sellers use online home valuation
tools and many (51 percent) also turn to the
internet to find comparable homes for sale
in their communities.
When FSBO sellers pay to advertise their
listing, most are using online resources
to showcase their property. Top choices
include a local multiple listing service
site (47 percent) or online real estate
sites (34 percent), with less use of print
advertisements or direct mail (15 percent).
CONSUMER HOUSING TRENDS REPORT 2016

91 | FAMILIES SELLERSAND HOMEOWNERSHIP
FAMILIES AND
HOMEOWNERSHIP
Starting a family is a common catalyst to homeownership, and families are
planning ahead to buy. Those with children at home get pre-approved more
often than childless buyers (87 percent versus 76 percent) and set aside
money over time for a down payment (59 percent versus 52 percent of
those without children).
Families with kids have less flexibility than other buyers as they seek
neighborhoods close to work and school and a single-family house. With
housing costs rising much faster than most incomes, their financial struggles
are clear as they juggle childcare costs, job opportunities and concerns
about schools and safety.
CONSUMER HOUSING TRENDS REPORT 2016

FAMILIES AND HOMEOWNERSHIP SELLERS | 92
CONSUMER HOUSING TRENDS REPORT 2016

93 | FAMILIES SELLERS AND HOMEOWNERSHIP
LOOKING FOR A FAMILY HOME
Families with children at home are almost always searching for a singlefamily
house (86 percent versus 81 percent for childless homes) and are
stretching their budgets to buy bigger homes than others: They typically
buy a median 2,000-square-foot house with three bedrooms, 2.5 bathrooms
at a median price of $234,000—17 percent more than those without children
in their home.
They most often buy in the suburbs (54 percent), versus an urban (25
percent) or rural (21 percent) area.
More than half of those with kids in the household (55 percent) consider
brand-new homes, compared to 42 percent of childless buyers. Only 18
percent of families with kids would consider a townhouse, 10 percent a
duplex or triplex, and 9 percent a condominium.
As a result, it may take families with children in the household more time to
complete a home search compared to childless couples or singles—averaging
17.4 weeks, versus just 16.6 weeks for those without kids. Those with kids in
the household tend to spend more time researching and analyzing their home
purchase (58 percent) than acting on gut feeling (42 percent).
CONSUMER HOUSING TRENDS REPORT 2016

FAMILIES AND HOMEOWNERSHIP SELLERS | 94
CONSUMER HOUSING TRENDS REPORT 2016

95 | FAMILIES SELLERS AND HOMEOWNERSHIP
BUDGET CONSIDERATIONS
More than a third (36 percent) of families with kids in the household say they
went over their budget to buy. Only 28 percent of those without kids did.
Financial concerns were top-of-mind when choosing a mortgage: Getting
the lowest rate was more likely to be very important to families with kids (82
percent) than those without kids (75 percent). Although 59 percent of those
with kids in the households used their savings to make a down payment,
those savings were often not enough. Thirty-eight percent of families with
kids in the home said they used two or more sources for a down payment,
compared to 26 percent of those with no kids.
Scraping together a down payment meant borrowing money and cashing in
retirement funds: Families with kids were more likely than couples without
kids to rely on family or friends for a loan (15 percent versus 7 percent for
couples) or a gift (21 percent versus 11 percent for couples), or cash out
retirement funds (16 percent versus 12 percent for couples).
RENOVATIONS AND REFINANCING
Financial hurdles last beyond the home purchase. When renovating the home,
those with kids in the household claimed their biggest home improvement
challenge is being able to pay for what they really want to do (55 percent),
followed by figuring out how much things really cost (44 percent).
When making home improvements, homeowners with kids are more likely
to finance them with credit, using a cash-out refinance 7 percent of the
time (the rate for couples without kids is 4 percent), 13 percent of the time
with a home equity line of credit (compared to 10 percent of childless
homeowners), and 30 percent with a credit card they can’t pay off right
away (compared to 21 percent of owners without kids).
Refinancing is common for those with kids in the home—almost half (47
percent) have refinanced their original mortgage. For most of those with
kids in the home, the goal for this refinance was to lower the interest rate
(63 percent). For some (11 percent), a refinance is a way to help pay for their
kids’ college educations.
CONSUMER HOUSING TRENDS REPORT 2016

FAMILIES AND HOMEOWNERSHIP SELLERS | 96
CONSUMER HOUSING TRENDS REPORT 2016

97 | BUYERS
3
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 98
TODAY’S
HOMEOWNER
As Millennials mature into midlife, the profile of who owns is diversifying
rapidly. A higher proportion of younger buyers—and homeowners—are
black/African-American, Latino/Hispanic or Asian/Pacific Islander than in
older generations. Today’s homeowner likely lives in the suburbs, and is
staying in their home for a long time—at least a decade.
Owners treat their home as a reflection of who they are rather than as
an investment, but they’re also aware of the advantages of taking a DIY
approach to repairs. Younger owners, especially, are ready to build sweat
equity, while older generations age out of the urge to do things themselves.
While they see their home as a personal space rather than an investment,
owners nonetheless manage their homes for maximum financial security.
They refinance periodically to obtain the best mortgage rate and
occasionally track their home's value so they understand their equity
position and local market.
CONSUMER HOUSING TRENDS REPORT 2016

99 | HOMEOWNERS
HOMEOWNER
CHARACTERISTICS &
CONSIDERATIONS
HOMEOWNERS ARE MARRIED, EDUCATED AND MID-CAREER
Homeowners are defined as people who own their home and have lived there for more than a year.
Married, mid-career, educated, affluent, mostly Caucasian and living at the same suburban single-family
home for over 10 years—that’s the settled-down American homeowner in a nutshell. The typical owner is
Caucasian (77 percent), a Baby Boomer (35 percent) and has attended college (64 percent). Just under
half (48 percent) of all owners live in households earning above $75,000.
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 100
H-1: TODAY'S HOMEOWNER
Median age is
52
49% GENDER 51%
female
male
Median income is
$62.5K
Silent Gen
20%
77%
White
1%
Other
5%
9%
Latino/
Hispanic
9%
Black/African-
American
Asian/Pacific Islander
Baby
Boomers
Gen X
Millennials
35%
29%
16%
6%
28%
72% of all homeowners are married or partnered
MARITAL
STATUS
66%
Married
Unmarried partners
Single
64% of homeowners have a college degree
30%
19%
15%
EDUCATION
16%
20%
High school or less
Some college
Two-year degree
Four-year degree
Graduate degree
CONSUMER HOUSING TRENDS REPORT 2016

101 | HOMEOWNERS
YOUNGER
OWNERS ARE
MORE DIVERSE
As newer buyers from the
Millennial generation mature
into their homeownership
years, the profile of the
typical American homeowner
is shifting. Younger
homeowners are more
likely to be black/African-
American, Latino/Hispanic,
or Asian/Pacific Islander than
older generations. Millennial
owners are two-thirds (66
percent) Caucasian, whereas
Generation X (72 percent),
Baby Boomers (80 percent)
and the Silent Generation
(85 percent) skew more
predominantly white.
H-2: HOMEOWNER ETHNICITY BY GENERATION
MILLENNIALS
66%
White
7%
BABY BOOMERS
1%
4%
17%
Latino/
Hispanic
10%
80% 6%
White
Other
Black/African-
American
Asian/Pacific Islander
Latino/
Hispanic
9%
Black/African-
American
Asian/Pacific Islander
GEN X
SILENT GEN
72%
White
85%
White
Other
7%
2%
1%
13%
Latino/
Hispanic
8%
Asian/Pacific Islander
4%
7%
Black/African-
American
Latino/Hispanic
Black/African-
American
Asian/Pacific Islander
H-3: INCOME RANGES BY REGION
100
90
28
24
26 23
80
37
27
70
17
17
19
20
60
50
23
22
22
21
25
22
40
30
18
18
23
20 23
20
22
15
10
15
11
11
11
7
0%
14
9
Total Midwest Northeast Southwest Southeast West
DIFFERENCES BY REGION
The Southeast (15 percent) has the highest
share of homeowners earning less than
$25,000, while the West and Northeast
have some of the highest earners—37
percent of homewoners in these regions are
earning six figures. First-time owners are
more likely to be living in the Southeast
(29 percent) and least likely to be living in
the Southwest (9 percent). The Northeast
has the highest share of townhouse
ownership (8 percent),
Under
while
$25K
the Midwest
and Northeast boast the highest share of
$25K - $50K
owners who have lived in their home for
two or more decades (33 percent for both).
Under $25K
$50K - $75K
$76K -

HOMEOWNERS | 102
MANY STILL RESIDE IN
FIRST HOME PURCHASED
More than half (53 percent) of all
homeowners are living in the first home
they’ve purchased. The majority of those
under age 50 (82 percent of Millennials,
65 percent of Generation X) currently
reside in the first home they bought, while
slightly less than half of Baby Boomers (45
percent) and over one in four (28 percent)
Silent Generation owners still do.
H-4: HOW OWNERS VIEW THEIR HOMES
Homeowners who are considering selling are more likely to see their home as a financial investment.
HOME IS A REFLECTION OF SELF
55
NO PLANS TO SELL
45
40
CONSIDERING SELLING
IN THE NEXT THREE YEARS
60
70
60
50
40
30
20
10 0%
10 20 30 40 50 60 70
CONSUMER HOUSING TRENDS REPORT 2016

103 | HOMEOWNERS
H-5: WHO LIVES IN THE HOME
100
90 90
91
80 80
85
87
85
77
80
70 70
73
72
72
60 60
64
64
50 50
58
40 40
30 30
35
27
20 20
10 10
20
18
9
16
12
0%
3
2 2 2 2 1
NET: Live Live with with others others
Spouse Spouse/partner / Partner
Child(ren) under under
the the age age of 18 of 18
Child(ren) age age
18 18 or or older older
Roommate(s)
"Millennial and Generation
X owners are more likely
to have children at home
under the age of 18."
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 104
Total Homeowners
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
57
44
47
43
30
18
14
2
5
1
1
0
9
8
7
4
8
4
4
7
Grandparent(s)
Other relative(s),
friend(s) friend(s) or individual or
individual(s)
NET: Have pets
None Live of alone the above
HOMEOWNERS ARE PRIMARILY COUPLES
Homeowners typically share their home with a partner or spouse (73 percent) versus living
with a roommate (2 percent) or solo (15 percent). More than one in three (35 percent) are
raising children under 18 in the home, and more than four in 10 have pets (44 percent).
Millennial and Generation X homeowners are more likely to have children at home under
the age of 18 (58 percent and 64 percent, respectively). Baby Boomers are the generation
most likely to be sharing their home with adult children—one in four (27 percent) have
children over the age of 18 at home.
Homeowners overall view their homes more as personal spaces (53 percent) than
financial investments (47 percent). However, those considering selling in the next three
years show the opposite psychology: six in 10 see their home as a financial investment,
with the rest (40 percent) viewing their residence as a reflection of who they are.
CONSUMER HOUSING TRENDS REPORT 2016

105 | HOMEOWNERS
MOST LIVE IN THE
SUBURBS
Most homeowners live in the suburbs (52
percent) rather than an urban (23 percent) or
rural (25 percent) setting. While owners opt for
suburbia, they typically live outside (76 percent)
rather than within (24 percent) a planned
housing community with shared amenities.
Household incomes influence where
homeowners live:
• Urban environments are the most
economically diverse when it comes to
homeownership, with homeowners equally
represented across a range of incomes.
• The lower a homeowner household’s
income, the more likely the home is in a
rural community: Over one in three owners
with an income of less than $25,000 (38
percent) live in a rural area, compared to 16
percent of those making $75,000 or above.
• The higher the income, the more likely a
homeowner is to reside in the suburbs: 61
percent of suburban homeowners make
more than $75,000 a year.
Generationally speaking, the stereotype of
Millennials as urban hipsters falls flat when
it comes to homeownership. Nearly half of
Millennial homeowners live in the suburbs
(47 percent), while a third settle in an urban
setting (33 percent); fewer opt for a rural
area (20 percent). That said, Millennials are
more likely than older generations to choose a
community with shared amenities (30 percent).
While most Millennials opt for the suburbs,
a larger proportion of them own homes in
urban areas (33 percent) than Generation X
(23 percent), Baby Boomers (20 percent) or
members of the Silent Generation (18 percent).
Baby Boomers and the Silent Generation (27
percent each) are the generations the most
likely to live in rural areas.
H-6: LOCATION—URBAN, RURAL
OR SUBURBAN
Fifty-two percent of homeowners live in the suburbs.
25% 23%
Suburban
TOTAL
HOMEOWNERS
52%
Rural
Urban
"Generationally
speaking, the stereotype
of Millennials as
urban hipsters falls
flat when it comes to
homeownership. "
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 106
BY GENERATION
100
BY INCOME
100
90
23
20
18
90
21 24 22 23
80
33
80
70
60
20
23 28 27
27
70
60
38
33
29
16
50
50 50
40
40
30
20
47
54 55
50 53
55
30
20 20
40
40
42
43
49
49
61
10
10 10
0%
Millennials
(18-34)
(18-34)
Gen X
Gen (35-54)
(35-54)
Boomers
Baby Silent Gen
(55-64) (65+)
Boomers (65-75)
(55-64)
0%

107 | HOMEOWNERS
SINGLE-FAMILY HOMES ARE PREDOMINANT
The majority of homes owned in America are single-family homes (86 percent).
Owned homes share a similar footprint to homes changing hands today—an
approximately 2,000-square-foot single-family structure with three bedrooms
and 2.5 bathrooms.
Millennials and members of the Silent Generation are more likely to own a twobedroom
home; Generation X and Boomers are more likely to have three or four
bedrooms. Millennials are the most likely generation to own a home that is less
than 750 square feet; 15 percent of them do.
Who’s living where?
• Single-family homes are the most common type of home owned in America,
with more than 80 percent of each generation residing in them.
• Condo and co-op homes account for 4 percent of homes owned in the U.S.
Single homeowners (12 percent) are three times more likely to own condos
and co-ops than couples (4 percent) and four times more likely to own them
than families (3 percent).
• Townhouses account for only 4 percent of all owned homes. Single owners
(7 percent) own these homes more often than couples or families (4
percent), Millennials (6 percent) and Generation X (6 percent), Boomers
(3 percent) or the Silent Generation (4 percent).
THE TYPICAL HOME OWNED
3 bedrooms
2.5 bathrooms
Median sq. ft. = 1,800
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 108
H-7: AGE OF HOMES OWNED
27%
27%
LONG TERM
HOMEOWNERS
10%
12%
MORE THAN HALF BUILT
BEFORE 1980
Half of all homes owned for one year or
longer were built in 1980 or earlier, with just
12 percent of owned homes being built in
2005 or after. The older the homeowner,
the more likely they live in an older home—
with 31 percent of Baby Boomers living in
homes built in 1960 or earlier. Millennial
owners are the most likely to own homes
built in 2005 or after (23 percent versus 16
percent for Generation X and 6 percent for
Baby Boomers).
24%
27%
Midwesterners and Northeasterners own
the most pre-1961 construction (40 percent
and 39 percent, respectively), while owners
in the Southwest and West show the highest
ownership of post-2005 construction.
Residents in the Southeast own the most
1980s and 1990s architecture (34 percent).
1960 or earlier
1961 to 1980
1981 to 1999
2000 to 2004 2005 or later
BY GENERATION
BY REGION
100
90
23
16
100
6 8 7 8
8
7
9 8
90
6
18
15 16
80
70
13
12
30 29 24
80
70
22 23
13
13 14
60
50
40
27
27 26
22
24 26
32
32
60
50
40
24
24
24
32
34
23
24
30
20
10
18
19
27 25
30 31 28
30
20
10
40 39
23
24 24
15
12 15
23
23
0%
Millennials
(18-34)
Gen X
(35-49)
Boomers Baby Silent Gen
(50-64) (65+)
Boomers (65-75)
(50-64)
0%
Midwest Northeast Southwest Southeast West
CONSUMER HOUSING TRENDS REPORT 2016

109 | HOMEOWNERS
HOME IMPROVEMENTS
& UPDATES
MAJORITY OF OWNERS
MAKE UPDATES
Homeowners accept that improving their property comes
with the territory. More than half of all homeowners
purchased a property that needed updates, with most (45
percent) indicating the home needed some updating and a
daring minority (7 percent) purchasing a home that needed a
complete overhaul. Eighteen percent purchased a home that
had been recently remodeled.
When it comes to ongoing home improvements, the average
homeowner has made 6.7 improvements to their home. The
most common improvements include painting the home’s
interior, replacing appliances, getting new carpet or flooring,
and landscaping the yard. Common large improvements,
include a bathroom overhaul (30 percent), kitchen overhaul
(22 percent), modifying their existing floor plan (16 percent)
and finishing their basement (13 percent). Owners aged 65-
75 are more likely to have completed a bathroom or kitchen
overhaul (36 percent and 28 percent, respectively), whereas
Millennials are slightly more likely to have finished their
basement (16 percent).
H-8: INITIAL CONDITION
OF HOME
18%
Needed a complete
overhaul
Needed a little
updating
7%
30%
Brand new
52% of homes needed updates
45%
Recently remodeled
or updated
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 110
H-9: RENOVATIONS AND IMPROVEMENTS MADE
Almost all homeowners (69 percent) have made improvements to their homes.
Painted interior of home
0% 10 20 30 40 50 60 70 80
0% 10 20 30 40 50 60 70 80
Replaced appliances
New carpet/flooring
Landscaped yard
Redecorated home/rooms
New/repaired roof
Minor bathroom upgrade
Replaced or repaired furnance/heater
Improved curb appeal
Painted exterior of home
Bathroom overhaul
Updated or repaired electrical
Minor kitchen upgrade
Updated plumbing
Kitchen overhaul
Modified existing floor plan
Finished basement
The majority (66 percent) choose to make improvements primarily to express their personal
style, with fewer than one in 10 (9 percent) making improvements with an eye toward resale.
Style improvements tend to involve interior and exterior painting, flooring replacement,
minor kitchen and bathroom upgrades, and general redecorating. Among generations,
Millennials show a higher interest (78 percent) in making upgrades to enhance their personal
expression and to increase the home’s energy efficiency.
Improvements done primarily for the purpose of making an immediate repair include replacing
appliances, getting a new or repaired roof, replacing or repairing their furnace, and updating
plumbing. Larger projects tend to be completed primarily for the purpose of improving their
functionality, including kitchen and bathroom overhauls, updating or repairing electrical or
plumbing, modifying the existing floor plan and finishing the basement.
When it comes to renovating a home, men and women differ on the types of projects
they’re most likely to tackle. Men show a higher preference for major and minor kitchen
improvements and finishing basements. Women show a higher preference for interior
redecorating, minor bathroom remodeling and replacing appliances.
CONSUMER HOUSING TRENDS REPORT 2016

111 | HOMEOWNERS
H-10: RESOURCES USED FOR IMPROVEMENTS
80
70
70
60
50
55
52
49
40
30
38
37
20
10
14
13
11
9
0%
Home
improvement
retailer
Home
improvement
professionals/
contractors
Friend
relative, or
neighbor
Online
resources
Magazines/
books
Video
Designer/
architect
Direct
mail
Attended an
open house
Real estate
agent/broker
ADVICE SOUGHT FROM MULTIPLE RESOURCES
Most homeowners (55 percent) rely on a contractor or professional when planning and
making home improvements, but they also seek advice from family, friends and neighbors
(52 percent) and conduct research via online resources (49 percent). Their local home
improvement retailer is also a commonly used resource, with 70 percent using them in
some fashion.
Real estate agents are rarely tapped for their home improvement expertise unless an
owner is planning to sell. Only 9 percent of owners contact their agent for help, but if
planning a sale, owners are more than twice as likely (22 percent) to reach out to their
agent for advice or referrals.
Nearly one-third (32 percent) of Millennial owners use information from more than five
resources. The majority of these young homeowners use online resources (71 percent),
home improvement retailers (69 percent), information from friends and family (64 percent)
and videos (61 percent). Generation X and Baby Boomer owners most often turn to home
improvement retailers (73 and 72 percent, respectively) as a source of information.
Members of the Silent Generation most frequently tap a contractor or professional (61
percent) or a home improvement retailer (65 percent), relying less often than other
generations on doing their own online research (25 percent) or using mobile resources
(5 percent).
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 112
H-11: DIY VS. HIRING A PRO
PREFER TO DO PROJECTS MYSELF
PREFER TO RELY ON PROFESSIONALS
62
TOTAL
38
69
MILLENNIALS
31
63
GEN X
37
63
BABY BOOMERS
37
52
SILENT GENERATION
48
80
70
60
50
40
30
20
10 0%
10 20 30 40 50 60 70 80
MAJORITY WILLING TO DIY
Most homeowners eventually confront this dilemma: Should they hire a professional
contractor or attempt a home improvement project themselves? The majority of
homeowners (62 percent) say they prefer to tackle home-related projects themselves
versus work with contractors (38 percent). The younger the owner, the more willing they are
to DIY a project. More than two-thirds of Millennials (69 percent) say they plan to do their
own repairs, whereas just over half (52 percent) of the Silent Generation are willing.
A preference for DIY is higher among families and couples (versus singles), those with
households earning below $75,000, and those living in a rural location.
The projects where a professional is most likely to be hired include replacing or repairing
the roof, repairing or replacing the furnace, updating or repairing electrical, installing new
carpeting or flooring, updating plumbing, completing a bathroom or kitchen overhaul, and
modifying an existing floor plan. Less labor- and skill-intensive projects are more likely to be
completed by the owner, including interior painting and redecorating, replacing appliances,
landscaping and improving curb appeal, and completing a minor bathroom upgrade.
CONSUMER HOUSING TRENDS REPORT 2016

113 | HOMEOWNERS
H-12: PROJECTS HOMEOWNERS MOST LIKELY TO DIY
Homeowners are most likely to tackle redecorating on their own, and hire a professional to repair/replace their roof.
100
100
90
90
11
14
19 18
21
80
80
11
14
12
16
32
43
37
38
70
70
18
60
60
17
50
50
13
21
25
40
30
40
30
77
73
69
66
60
50
20
20
44
41
37
10
10
0%
0%
Redecorated
home/rooms
Improved
curb
appeal
Painted
interior
of home
Landscaped
yard
Minor
bathroom
upgrade
Replaced
appliances
Painted
exterior
of home
Minor
kitchen
upgrade
Finished
basement
Millennials show a willingness to use a mix of do-it-yourself approaches and professional
help. These young homeowners are among the most willing to use a combined approach
for projects like minor kitchen remodeling (26 percent), or to complete all the work in that
improvement category themselves (49 percent).
Generation X owners will do light work such as interior decorating (79 percent) but
they tend to hire professionals for large-footprint projects such as kitchen overhauls (49
percent) and basement build-outs (47 percent).
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 114
Hired a
professional
Mix of DIY &
professional
DIY
46
48
53
55
59
60
82 82
20 20
20
18
16
16
34 33
27 27
25 24
7 7
11 11
Modified
floor plan
Bathroom
overhaul
Kitchen
overhaul
Updated
plumbing
New carpet/
flooring
Repaired
electrical
Replaced
or repaired
furnance/heater
New/repaired
roof
Baby Boomers are willing to tackle light DIY projects outdoors, such as landscaping (69
percent) and curb appeal improvements (75 percent). Indoors, they’re willing to replace
appliances (52 percent) or manage bathroom upgrade projects (63 percent).
Members of the Silent Generation are more inclined to hire professionals and contractors
when projects need to be done around the home. Nearly half (48 percent) prefer to hire
professional help, versus the overall average (38 percent).
CONSUMER HOUSING TRENDS REPORT 2016

115 | HOMEOWNERS
H-13: HOW OWNERS PAID FOR IMPROVEMENTS
70
60
65
59
50
57
56
48
40
30
20
30
27 26
32
35
30
28 28
33
31
35
25
28
32
22
20 20
19
20 20 19
10
0%
Cash/debit
card
Pull from general
savings
Credit card paid
off right away
Credit card paid off via
monthly payment
Pull from savings
specifically set aside for
improvements
MOST PROJECTS STAY WITHIN BUDGET
Most owners reported keeping their projects within budget, both for DIY approaches
and when using a professional. Seventy-nine percent of projects completed DIY were
either on budget or cheaper than anticipated, compared to 61 percent of projects where
a professional completed the work. Millennial owners are the most likely generation to
exceed their budget, particularly for projects where they hired a professional: Half of these
projects went over budget, compared to 38 percent of projects undertaken by those age
35 or older. In contrast, more than six in 10 homeowners age 50 and older indicated that
their projects ended up costing about what they budgeted, regardless of being completed
DIY or by a professional.
When paying for home improvements, more than half (57 percent) of all homeowners use
cash or a debit card, followed by general savings (30 percent). Paying with a regularly paidoff
credit card appeals particularly to owners in Western states (37 percent). Paying off
over time, via monthly payments, appeals most to families (30 percent), while using a home
equity line of credit (HELOC) is more common among those in the Northeast (16 percent).
Just 20 percent of owners pull from savings that are specifically set aside for improvements.
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 116
Total homeowners who
made improvements
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
14
11
8
11 11
9
9
10
5
5 5
4
4
4
2 2 3
2 2 1
Home equity line of
credit (HELOC)
Cash-out refinance Construction loan Borrow from
friends/family
H-14: INITIAL BUDGET VS. FINAL BUDGET
Projects Projects where
where I I hired hired a
a professional
4
57
39
Projects that
were a mix of
professional
and DIY
10
58
58 32
Projects that I
completed
myself (DIY)
18
61
18 61 21
0%
10
20
30
40 50 60 70 80 90 100
Above budget
At budget
Under budget
CONSUMER HOUSING TRENDS REPORT 2016

117 | HOMEOWNERS
MAJORITY OF PROJECTS MEET EXPECTATIONS
The overwhelming majority of home improvement projects met or exceeded initial
expectations: More than half (52 to 58 percent) of professional and DIY projects turned out
how owners expected, with an additional 38 to 43 percent indicating the project turned out
better than expected. Less than 5 percent of projects turned out worse than anticipated.
H-15: INITIAL EXPECTATIONS VS. FINAL OUTCOME
Projects where
Projects
I hired a
where
professional
I hired
a professional
5
52
42
Projects that that
were
were
a mix
mix
of
of
professional
professional
and DIY
and DIY
3
54
43
Worse than
expected
Projects that I
completed
myself (DIY)
4
58
38
About what
I expected
Better than
expected
0%
10
20
30
40 50 60 70 80 90 100
H-16: APPROACH TO ONGOING
MAINTENANCE
33%
I fix things as they
come up
I actively plan out
what I will be
working on
7%
I do as little as
possible, just
enough to keep it
running
60%
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 118
ONGOING MAINTENANCE
When it comes to ongoing maintenance, most homeowners (60 percent) deal with issues
on an as-needed basis, taking an “if it ain’t broke, don’t fix it” approach. However, one in
three (33 percent) owners takes a more organized stance toward home maintenance with
a plan that prioritizes repairs or assumes periodic attention to home systems. Millennials
are more likely than older age cohorts to take a more proactive approach to home
maintenance, with four in 10 (41 percent) indicating they actively plan out what they’ll be
working on. Fewer than one in 10 homeowners (7 percent) report doing the bare minimum
to keep their homes running.
The most common maintenance-related projects where owners involve a professional
include air conditioning maintenance, furnace/HVAC maintenance, pest control,
chimney cleaning, and pest control. Climate plays a major role when it comes to home
maintenance, as the Silent Generation and residents of the Southwest are particularly
worried about air conditioning, while residents of the Midwest and Northeast seek help for
furnace upkeep.
H-17: PROJECTS COMPLETED BY PROFESSIONALS
Among those with a need, homeowners are most likely to hire a professional for furnace/HVAC maintenance.
0% 10 20 30 40 50 60 70
Air conditioning maintenance
Furnace/HVAC maintenance
Pest control
Chimney cleaning
Roof/gutter cleaning
Yard maintenance
Junk removal/cleanup
House cleaning
Pool maintanence
CONSUMER HOUSING TRENDS REPORT 2016

119 | HOMEOWNERS
H-18: MOST CHALLENGING ASPECTS OF OWNING
70
60
50
40
30
53
46
55
56
50
43
44
43
43
44
41
42
38
41
43
37
31
32
39
46
35
49
42
33
20
19
10
0%
Being able to
pay for what I
want to do
Figuring out
how much things
really cost
Deciding what to
fix to improve next
Not knowing what or
when things will break
Finding the time to
work on it myself
"Among generations, Millennials
need time to do the work, while Baby
Boomers and the Silent Generation
worry about systems breaking and
being able to afford the necessary
ongoing maintenance. "
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 120
Total Homeowners
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
45
35
36
28
31
23
20
25
22
22
18
20
21
17
16
18
11
11
10
9
Trying to find the
right professional to
do the work
Just the fact that I
always have projects
Getting my
spouse/partner to
agree on what to do
Figuring out
what return on
investment I'll get
Homeowners report that their maintenance challenges involve:
• Financing projects (53 percent)
• Calculating costs for repairs or parts (43 percent)
• Deciding what to fix or improve next (41 percent)
Among generations, Millennials struggle to find the time to handle the work, while
Baby Boomers and the Silent Generation worry about systems breaking and being
able to afford the necessary ongoing maintenance. Families struggle with financing
projects, while single owners are concerned about how to anticipate when various
systems will need attention.
CONSUMER HOUSING TRENDS REPORT 2016

121 | HOMEOWNERS
THE DRIVE TO DIY
SNAPSHOT
THE DRIVE TO DIY
Almost all of U.S. homeowners (96 percent) have made some
improvement to their homes, from painting and redecorating to a
full kitchen overhaul. Often, they hire professionals, but across all
demographics, many owners are taking on projects themselves.
The most exuberant DIYers are Midwesterners, Millennials, women, and
couples who more often tackle large projects. What unites DIYers is their
motivation to bring personal style to their home rather than making
renovations purely for the sake of boosting home value.
Here’s a look at how differing populations approach DIY.
MIDWESTERNERS
Homeowners in the Midwest are most likely to classify themselves as home
improvers. When they turn to home improvement projects, they show
the highest preference (65 percent) among residents of any region for
approaching projects themselves.
Nothing is too difficult: When Midwestern homeowners take on a DIY
project they tackle complex or labor-intensive projects like bathroom
overhauls (42 percent) or basement remodels (44 percent). More than half
(54 percent) are willing to take on a minor kitchen upgrade, whereas fewer
than four in 10 owners elsewhere tackle fixing this heart of the home.
MILLENNIALS
Millennials are the “handyman” generation, and are quick to DIY major
projects rather than pay laborers. In all, 69 percent of Millennials indicate
that when projects need to be done around the home, they prefer to
do them directly as opposed to relying on professionals. Among the
generations, they show the highest willingness to tackle appliance
installation (65 percent), the installation of new carpet or flooring (34
percent) or update plumbing (33 percent). Two in 10 (21 percent) would
replace or repair a roof, versus about one in 10 for Baby Boomer or Silent
Generation homeowners (11 percent and 7 percent, respectively).
CONSUMER HOUSING TRENDS REPORT
2016

THE HOMEOWNERS DRIVE TO DIY | | 122
Millennials are young and ambitious, which may fuel their confidence
about taking matters into their own hands. Despite their inexperience,
three out of four Millennials (74 percent) report that they came in at
or below their DIY project budget, which is about on par with other
generations. Additionally, a larger share of Millennials live in urban areas
(33 percent), where DIY may be the more affordable option.
WOMEN
Along gender lines, women are much more willing than men to
tackle redecorating or aesthetic changes. More women than men
tackle redecorating (82 percent versus 72 percent) and go in for DIY
landscaping projects (69 percent versus 62 percent). Indoors, they will
happily paint (71 percent) or update appliances (51 percent). Women
are more likely than men to improve curb appeal (74 percent versus 71
percent) on their own, too.
NESTERS
DIY projects are more common among couples than in single
households, suggesting that collaborating on home projects is most
enjoyed when there’s more than one set of helping hands.
Four in five (78 percent) of all childless couples DIY their decorating
efforts, more than three in five (65 percent) handle their own
landscaping, and nearly half (47 percent) DIY appliance updates.
Families with kids are more likely those without kids to paint the
interior of their home (52 percent versus 48 percent) and nearly as
likely as their childless counterparts to handle appliance (35 percent)
and bathroom updates (34 percent).
CONSUMER CONSUMER HOUSING HOUSING TRENDS TRENDS REPORT REPORT 2016

123 | HOMEOWNERS
REFINANCING & LENDER
DECISIONS
"Nearly six in 10
homeowners (58
percent) have a
mortgage loan they
are in the process
of paying."
MOST STILL PAYING OFF MORTGAGE
Nearly six in 10 homeowners (58 percent) have a mortgage
loan they are in the process of paying. The Silent Generation
is the age group least likely to still be making payments, as
more than half (53 percent) own their home free and clear.
Regionally, residents in the Northeast (40 percent) are
the most likely to have paid off their mortgage. Among
households, single owners (45 percent) are more likely to
have paid down the mortgage than families (29 percent).
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 124
H-19: MORTGAGE VS. PAID OFF
100
90
6
4
5
8
4 5 6
6
36%
58%
80
70
60
50
33
40
40
37
37
37
32
6%
40
30
20
61
61
55
55
58
58
61
55
62
62
10
In process of
paying off
mortgage
Home is fully
paid off
Never had a
mortgage
0
MidwestN Northeast SouthwestS Southeast outheastW West
JUST UNDER HALF
HAVE REFINANCED
Many homeowners refinance their home
to take advantage of shifts in current
interest rates or to use a combination of
rates and additional cash down payment
to create a lower monthly payment. Four
out of 10 homeowners (43 percent) have
refinanced their home at least once, with
those planning to sell or currently selling
(57 percent) and residents in the West (53
percent) among the most likely. Additionally,
owners of single-family homes (45 percent)
and Baby Boomers (48 percent) show a
higher predilection toward refinancing than
their respective counterparts.
H-20: REFINANCED HOME—YES OR NO
14%
TOTAL
OWNERS
29%
Yes —one time
57%
Yes—more than once
No—never refinanced
CONSUMER HOUSING TRENDS REPORT 2016

125 | HOMEOWNERS
H-21: REASONS FOR REFINANCING
80
70
74
72
Total homeowners
who refinanced
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
60
66
63
Silent Gen (65-75)
50
40
43
49
48
46
45
41
30
20
27
25 25
24
19
22
25
21
21
10
0%
8
10
3
3
7
8
3
3
7
9
4
3
5
6
2
2
10
6
6
11
14
Lower
interest rate
Reduce monthly
mortgage
payment
Reduce the Change loan type
length of time left
on the loan
Help pay for
child's college
Help save for
retirement
Help pay for a
second home or
vacation home
Other
A small group of homeowners have chosen to refinance more than once over their lifetime
(14 percent). Nearly one in five of those 50 and older (18 percent of Silent Generation, 17
percent of Baby Boomers) have refinanced more than once.
More than half of all homeowners who have refinanced (63 percent) have done so in the
past five years, and three out of four (75 percent) prospective sellers have refinanced
within the past five years. Silent Generation and Baby Boomers are most likely to have
refinanced six or more years ago, while the Millennial demographic are most likely (14
percent) to have refinanced within the past year.
When refinancing, two out of three (66 percent) homeowners say they are seeking lower
interest rates on their mortgage loan and nearly half (46 percent) are hoping a refinance
will lead to lower mortgage payments. A small group refinanced to change their loan type
(8 percent), driven predominantly by Millennials (22 percent).
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 126
H-22: WHEN OWNERS REFINANCED
SELECTING A LENDER
100
90
80
70
60 60
16
22
2
8
34
5
20
21
26
29
22
Nearly half (46 percent) of all owners who
refinanced used their current financial
institution and just over one in 10 (13
percent) turned to referrals from friends to
find a lender. Thirteen percent of Millennials
found their lender through an online search
engine, and 11 percent found a lender
through a real estate-related website.
50
40
30
36
41
45
34
29
Longer than
10 years ago
20 20
10 10
0%
19
8
Total
14
Millennials
(18-34)
(18-34)
22
8
Gen X
(35-49)
(35-49)
12
6
13
7
Baby Baby Boomers Silent Gen
(50-64) (65+)
Boomers (65-75)
(50-64)
6 – 10 years ago
3 – 5 years ago
1 – 2 years ago
Within the
past year
H-23: HOW OWNERS
FOUND LENDER
13% were referred by friends or familily
13%
5%
4%
3%
2%
2%
8%
5%
TOTAL
HOMEOWNERS
46%
Used my current
financial institution
Used another
financial institution
Search engine
Real estate
website/app
Other type of
website/app
Referral from friend,
relative, neighbor or
colleague
Referral from real
estate agent
Direct mail
Newspaper ad
13%
Other
CONSUMER HOUSING TRENDS REPORT 2016

127 | HOMEOWNERS
H-24: IMPORTANT ATTRIBUTES WHEN SELECTING A LENDER
Owners over age 35 most value having the lowest rates, while Millennials prioritize meeting their terms.
100
90
80
79
84
79
80
70
60
65
73
69
74
74
72
63
66
64
61
67
59
60
63
57
50
54
50
53
54
49
40
46
30
20
10
0%
Had the lowest rates
Willing to work with
me to meet my terms
Best mortgage
products
Initial impression of
lender: responsive
Past personal experience
with the lender
When evaluating mortgage providers for refinancing, the most important factors for
homeowners are having the lowest rates and being willing to meet their terms. Past
personal experience with the lender is also critical, with 50 percent of homeowners who
refinanced indicating this is important.
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 128
Total homeowners
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
Silent Gen (65-75)
55
56
49
51
45
40
43
42
41
39
39
46
36
35
34
34
33
32
30
30
Is a well-known/national
company
Has a location
near me
Already had a
financial account
there
Is a local company
Millennials are less focused on having the lowest rates—65 percent indicate this is important,
compared to 84 percent for Generation X, 79 percent for Baby Boomers and 80 percent for
the Silent Generation. Instead, Millennials place more emphasis on having the best mortgage
products (66 percent). They also indicate that having a location near them (56 percent),
already having an account with that lender (51 percent), and being a local company (46
percent) as more important attributes compared to those older than 35.
CONSUMER HOUSING TRENDS REPORT 2016

129 | HOMEOWNERS
RENTING THE HOME
Most homeowners (93 percent)
do not rent any portion of their
primary home. A small minority
now rent to others (3 percent)
or intend to within three years
(4 percent), and among U.S.
regions, residents in the pricey
West show more openness to
doing so (9 percent).
Generationally, Millennials are
the most likely to rent out their
primary home for income (6
percent) or have plans to do so
(11 percent), while older owners
have less interest in using their
primary home for rental income.
H-25: RENTING HOME—
YES OR NO
93%
TOTAL
HOMEOWNERS
No—do not rent
out any part of
my home and do
not intend to
Yes—not currently,
but plan to rent
out a part in the
next 3 years
Yes—renting out
a part now
3% 4%
7% of homeowners are
renting or planning to rent
GENERATION
100
REGION
100
90
90
80
27
80
27
70
70
60
50
82
91
96
97
97
60
50
97
95 94
92 89
88
40
73
73
40
73
73
30
30
20
20
10
11
10
6
5 6 9
6
2
3
3 1 1
2 2
2 2
4 5
0% 0%
4
Millennials Gen X
Baby Silent Gen
Midwest Southeast Northeast Southwest West
(18-24) (35-49) Boomers (65-75)
(50-64)
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 130
OWNING
ADDITIONAL HOMES
Nearly one in five homeowners (18 percent)
own an additional property beyond their
primary residence. This is comprised of
investment properties (9 percent) and
vacation or secondary homes (9 percent).
Repeat owners of a primary property (22
percent), men (21 percent) and families (20
percent) are more likely than their respective
counterparts to own additional property.
Nearly half (45 percent) of those with
additional property choose to rent them
out. Renting other properties is highest in
the West (61 percent), among those raising
children at home (51 percent), and among
Millennials or members of Generation X (49
percent for each).
H-26: OWNING OTHER PROPERTIES
9%
Vacation or
secondary home
3%
Another type
of home
Vacation or secondary home(s)
Investment properties
9%
Investment
properties
Another type of home
H-27: RENTING OUT OTHER PROPERTIES
Among those who own additional property, just under half rent out these properties.
GENERATION
100
REGION
100
90
90
80
70
60
55
51
51
51
51
60
60
57
43
80
70
60
66
66
56
59
57
57
59
56
39
50
50
40
40
30
20
45
49
49
49
40
53
43
30
20
34
41 44
43
44 41
61
10
10
0
Total
Millennials
(18-24)
Gen X
(35-49)
Baby
Boomers
(50-64)
Silent Gen
(65-75)
0
Midwest
Southeast
Northeast
Southwest
West
Yes—renting out
No —not renting out
CONSUMER HOUSING TRENDS REPORT 2016

131 | HOMEOWNERS
LOOKING AHEAD &
NEXT STEPS
"The typical
homeowner has
plans to do at least
three maintenance
projects over the
next three years."
HOME IMPROVEMENT PROJECTS
The typical homeowner has plans to do at least three
maintenance projects over the next three years. Common
plans include painting (44 percent), upgrading flooring (31
percent) and updating kitchens (26 percent). Ambitious
Millennials and families are the most likely to have five or more
projects in the pipeline (both 27 percent), while members of
the Silent Generation are most likely to have none (23 percent).
By gender, men tend to prioritize structural repairs while
women focus on aesthetic improvements.
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 132
H-28: IMPROVEMENTS PLANNED IN NEXT THREE YEARS
0% 10 20 30 40
Paint interior of home
New carpet/flooring
Landscape yard
Redecorate home/rooms
Replace appliances
Paint exterior of home
Improve curb appeal
Minor bathroom upgrade
Minor kitchen upgrade
Bathroom overhaul
New roof/repair roof
Update or repair electrical
Kitchen overhaul
Update plumbing
Replace or repair furnace/heater
Finish basement
Modify existing floor plan
No improvement plans
CONSUMER HOUSING TRENDS REPORT 2016

133 | HOMEOWNERS
H-29: OWNERSHIP TIME FRAME VS. LIKELIHOOD TO SELL
Those who have owned their home for less than 10 years are more likely to consider selling.
100
90
80
70
56
49
46
56
68
60
50
40
33
36
30
20
29
30
23
No plans to sell
10
0%
18
18
14
14
Total
Homeowners
1-4 years
Homeowners
5-9 years
Homeowners
10-19 years
Homeowners
Total 1-4 years 5-9 years 10-19 years
9
20+ years
Homeowners
20+ years
Might consider
selling, but no
immediate plans
Considering
selling
LIKELIHOOD TO SELL
As time passes, homeowners periodically weigh whether it’s better to stick with the
home they own or list it for sale. The majority have no firm plans to sell (86 percent),
however 29 percent might consider selling at some point. Twelve percent are
considering selling in the next three years, and 2 percent have their home currently on
the market. Millennials (22 percent), those with children at home (18 percent), and those
living in an urban area (20 percent) are more likely to have plans to sell.
CONSUMER HOUSING TRENDS REPORT 2016

HOMEOWNERS | 134
H-30: IN CONTACT WITH AGENT —
YES OR NO
25%
Yes—often
Yes—occasionally
49%
TOTAL
HOMEOWNERS
6%
H-31: AGENT RECOMMENDATION
No
20%
N/A: did not use an
agent to buy this home
COMMUNICATING
WITH AGENTS
One in four homeowners (26 percent) say
they keep in touch with the agent through
whom they purchased their home, 20
percent indicate occasional contact, and
6 percent cite regular communication.
Millennials (40 percent) are the most likely
to stay in touch with their agent, compared
to 32 percent of Generation X, 18 percent
of Baby Boomers and 19 percent of the
Silent Generation. Men are also more likely
to keep in contact with their agent—31
percent do, compared to 21 percent of
women. Additionally, owners planning to sell
indicate a higher incidence of agent contact
(48 percent, 15 percent of which is regular
contact), perhaps in anticipation of hiring
their agent for a listing or to seek an agent’s
advice about pre-sale home projects.
Word of mouth is helpful to buyers and
sellers when choosing an agent, and just
under half (43 percent) of all owners have
recommended their agent. Among those
most likely to refer their agent are Millennials
and Generation X (55 percent and 49
percent respectively, versus 35 percent of
Baby Boomers and 36 percent of the Silent
Generation), households with children (57
percent, versus 39 percent of those without
kids), and those living in an urban locale
(49 percent, versus 43 percent of suburban
owners and 36 percent of rural owners).
57%
TOTAL
HOMEOWNERS
WHO USED
AGENT TO BUY
HOME
43%
Yes, I have
recommended
my agent
No, I have not
recommended
my agent
CONSUMER HOUSING TRENDS REPORT 2016

135 | BUYERS
4
CONSUMER HOUSING TRENDS REPORT 2016

BUYERS | 136
TODAY’S RENTER
Today’s renter is aware of the dynamic housing market—and nearly six out of 10 renters consider
both renting and buying. Nearly half of all renters consider living in a single-family home, but less
than one-third actually do, a factor that may contribute to renters’ interest in homeownership.
Finding a new rental takes an average of 10.4 weeks—and up to 12 weeks for those with
lower household incomes. Eight out of 10 renters use online resources in their home search,
and most reach out to at least four landlords or property managers in the process of
searching for their new place. More than 20 percent of renters will give up on a property if
they don't receive a response to their inquiry in what they consider to be a timely manner,
which for most is within 24 hours.
Renters typically sign leases with a length of 12 months. They prioritize finding a place that
fits within their budget, is in a safe neighborhood, and takes their pets, sacrificing other
features such as square footage, a yard, garage or view in favor of a home they can afford in
their desired location.
CONSUMER HOUSING TRENDS REPORT 2016

137 | RENTERS
RENTER CHARACTERISTICS
& CONSIDERATIONS
MOST EARN LESS THAN $50,000
Renters are defined as people who moved to a home that they rent within the last year, which includes the
main decision-makers and other household members who had a say in the decision.
Today’s typical renter is most often female (57 percent), Caucasian (52 percent) and part of a household
earning below $50,000 annually (58 percent). Eighty-four percent of renters are below age 50, making
them Millennials (56 percent) or members of Generation X (28 percent).
Among generations:
• Millennial renters represent more than half of all renters (56 percent), and they are often women (59
percent), more likely than older generations to be Latino/Hispanic (23 percent), and include adults
across all income levels.
• Generation X renters represent approximately one out of three renters (29 percent). This generation is
balanced by gender (47 percent male versus 53 percent female) and more likely to be black/African-
American (21 percent) than other generations. Nearly a third (29 percent) earn above $75,000 a year,
representing the highest proportion of wealthier renters among the generations.
• Sixty-one percent of Baby Boomers who rent are women, most bring in below $50,000 (61 percent),
and most are Caucasian (66 percent).
• Silent Generation renters are balanced by gender (49 percent male/51 percent female) and are most
often Caucasian (72 percent) or black/African-American (17 percent). Nearly three out of four (72
percent) are living on household incomes below $50,000, suggesting they are drawing on Social
Security or a fixed retirement income.
In terms of household composition, six in 10 (59 percent) are living with a spouse/partner, and four in
10 have children under the age of 18. One in three renters has at least one pet (35 percent), comprised
primarily of cats (16 percent), small dogs (15 percent) and medium/large dogs (12 percent).
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 138
R-1: TODAY'S AVERAGE RENTER
Median age is
Median income is
32
57%
female
GENDER
43%
male
$37.5K
Silent Gen 3%
Baby Boomer s
12%
52% 19%
Latino/Hispanic
White
3%
9%
17%
Black/
African-
American
Gen X
Gen X
Millennials
Older Millenials
28%
56%
Other
Asian/Pacific Islander
35%
20%
MARITAL
STATUS
55% of all renters are married or partnered
45%
Unmarried
partners
25%
51% of all renters have a college degree
15%
EDUCATION
27% 22%
11%
High school or less
Some college
Two-year degree
Married
Four-year degree
Single
Graduate
CONSUMER HOUSING TRENDS REPORT 2016

139 | RENTERS
HOME SHOPPING A SHARED EFFORT
More than four out of five renters (82 percent) are co-shopping for a home with either a
romantic partner (53 percent) or roommate-to-be (20 percent). Most (88 percent) of renters
age 24 or younger are searching for a home they intend to share.
TYPICAL HOME SEARCH TAKES TWO TO THREE MONTHS
The average renter spends 10.4 weeks searching for a home. Generally speaking, the higher
a renter’s income, the faster they tend to find a new home. Renters earning over $75,000
secure a place in fewer than 10 weeks on average, while those earning under $25,000 need
nearly 12 weeks on average to find a new home.
RENTERS SEEK SINGLE-FAMILY HOMES
Like buyers, renters’ first choice is a single-family home (48 percent). However, renters’
consideration of stand-alone houses is less pronounced than that of buyers (83 percent).
More than half (51 percent) of renters are looking at units in small or mid-sized buildings,
and about one-third (32 percent) consider townhouses.
Renters also consider larger buildings with more than 50 units (30 percent), duplex/triplex
units (24 percent) or a condo/co-op (17 percent). Just 7 percent are considering applying
to live in income-restricted rental housing.
Many generational trends exist when considering types of rental homes:
• Millennials are most willing to move into apartment buildings of any type—large,
medium-sized, small—or into townhouses.
• Generation X renters are most interested in single-family home rentals (54 percent)
but are also open to living in apartment buildings.
• Baby Boomers are the population most likely to consider living in a duplex or triplex
(26 percent).
• Silent Generation renters are more likely to consider “other” housing (19 percent),
possibly because some senior housing doesn’t fit conventional rental parameters, or to
rent income-restricted properties (12 percent) as many live on fixed incomes in retirement.
"The average renter spends 10.4
weeks searching for a home. The
higher a renter’s income, the faster
they tend to find a new home."
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 140
R-2: TYPES OF HOMES CONSIDERED
51%
of renters are looking for apartments
in small-to medium-size buildings
48%
for single-family
houses
32%
for townhouses
24%
for duplexes
or triplexes
17%
for condos or
co-op housing
7%
for room in
shared housing
7%
for income-restricted
home
CONSUMER HOUSING TRENDS REPORT 2016

141 | RENTERS
R-3: RENTING BY REGION
MIDWEST
Midwestern renters are
slightly more interested in
duplex/triplex housing.
WEST
Western renters are interested
in medium-sized apartment
buildings, a condo/co-op, or a
room in a shared home.
SOUTHWEST
Southwestern renters are
more interested in larger
apartment communities
versus other regions.
MIDWEST
NORTHEAST
SOUTHWEST
SMALL-MEDIUM APARTMENT
53%
58%
50%
SINGLE-FAMILY HOMES
50%
38%
44%
TOWNHOUSE
30%
26%
32%
LARGE APARTMENT
27%
27%
35%
DUPLEX/TRIPLEX
29%
18%
24%
CONDOS/CO-OP
18%
15%
20%
ROOM IN SHARED HOUSING
6%
10%
2%
INCOME-RESTRICTED HOME
6%
6%
7%
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 142
NORTHEAST
Northeastern renters are
more likely to seek out smaller
apartment buildings.
SOUTHEAST
Southeastern renters are most
interested in single-family homes.
Regionally, renters in the Southeast and Midwest seek the
space afforded by single-family homes, while renters in the
expensive and dense Northeast and West look to smaller
buildings, sharing a home, or income-restricted options
to make the rent more affordable. Those in the Southwest
appear to seek the amenities of larger rental communities.
• Northeast renters are among those most likely to seek
out small apartment buildings (58 percent) or to rent a
room in a shared home (10 percent).
• Southeast renters seek space, and are among the
most interested in single-family homes (53 percent) or
townhouses (35 percent).
• Midwest renters show the most interest in duplex/
triplex housing (29 percent). They are also among the
most interested in single-family homes (50 percent) and
smaller apartment buildings (41 percent).
• Southwest renters are the most interested in larger
apartment communities (35 percent) or renting a condo
or co-op (20 percent).
• Western renters express considerable interest in small- to
medium-sized apartment buildings (53 percent), a condo
or co-op (20 percent), or economizing by living in a room
in a shared home (10 percent) or in an income-restricted
property (9 percent).
SOUTHEAST
45%
53%
35%
30%
21%
16%
6%
6%
WEST
53%
47%
33%
31%
27%
20%
10%
9%
MORE THAN HALF CONSIDER
BUYING INSTEAD
More than half (58 percent) of all renters in the market
for a new rental home are also considering buying a
place—with 19 percent seriously looking to buy and 39
percent casually considering it. This is particularly true for
Millennials and members of Generation X (63 percent and
59 percent, respectively).
Among adults over 50 who rent, the majority (57 percent
of Boomers, 68 percent of the Silent Generation) do not
consider buying at all.
CONSUMER HOUSING TRENDS REPORT 2016

143 | RENTERS
SEARCHING & SHOPPING
RESOURCES
"Four out of
five renters use
online resources
to assist in their
home searches."
ONLINE RESOURCES AND RENTAL
PROFESSIONALS MOST COMMON
Finding a rental home can be challenging, as inventory fluctuates
along with national and regional economic trends. Any renter hitting
the market during a local industry’s hiring boom, shopping for a home
in a college town near the launch of the academic year, or seeking a
house in a popular school district or trendy neighborhood will face
steep competition.
Four out of five renters use online resources to assist in their home
search (84 percent), which is the most commonly used resource. This
is followed by direct contact with the property owners/landlords (62
percent), and referrals by friends, relatives or neighbors (59 percent).
Over half (53 percent) also consider property managers or leasing
agents to be resources during their search.
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 144
R-4: RESOURCES USED TO SEARCH & SHOP
Online resources are most used by those under age 65, whereas the Silent Generation favors rental professionals.
100
90
80
84
90
84
Total Renters
Millennials (18-34)
Gen X (35-49)
Baby Boomers (50-64)
70
Silent Gen (65-75)
67
66
60
50
54
63
62
61
62
64
56
54
53
52
59
62
56 55
54
40
30
20
39
38 38
33
26
40
38
34
32
23
31
29 29
24
30
20
Tot
Mil
Ge
Bo
10
16
14
Sen
7
8
0
NET: Online Resource
Landlord / owner
of the home
Property manager /
leasing agent
Friend, relative or
neighbor
Yard sign or open
house sign
Print ad
Real estate agent or
broker
Direct mail
ONLINE RESOURCES ACCESSED IN A VARIETY OF WAYS
When it comes to technology’s role in connecting renters with new homes, most renters are using
their desktop computers (74 percent) to search for homes, followed by mobile sites (59 percent)
and apps (43 percent). Millennials are the most bullish on mobile search, with three out of four
turning to mobile (76 percent), versus just 61 percent of Generation X renters, over a third of Baby
Boomers (35 percent) and one in four Silent Generation renters (24 percent).
Here’s how renters approach their home search, by generation:
• Millennial renters turn first to technology. They are the generation most likely to use online
resources (90 percent), particularly via mobile access (76 percent), and are more likely than
those age 35 or older to reach out to their friends, relatives and neighbors for advice (62 percent).
• Generation X turns to the internet and landlords. They rely most on online tools (84 percent)
and direct landlord or owner contact (63 percent). Additionally, four in 10 pay attention to yard or
open house signs (38 percent), which is on par with Millennials and higher than those 50 and over
(33 percent for Baby Boomers, 26 percent for Silent Generation).
• Baby Boomers mix internet research and human contact. They use the internet (67 percent),
talk to landlords (66 percent) and reach out to property managers (56 percent). They are the
generation most likely to notice print ads (40 percent).
• Silent Generation renters rely on people first, technology second. They predominantly turn to
property managers/leasing agents (64 percent) and landlords/owners (62 percent), with half
(54 percent) also using online tools and one in four using mobile (24 percent).
CONSUMER HOUSING TRENDS REPORT 2016

145 | RENTERS
THE ROLE OF PROPERTY
MANAGERS AND LANDLORDS
Rental properties are typically managed by two types
of individuals—the property owner/landlord or a hired
property manager.
Bigger properties are more likely to be institutionally
owned and to employ a management company or onsite
property manager. Smaller buildings, single-family
homes and stand-alone units (condos, townhouses) are
often owned by individuals or landlords who rent out
these properties as a livelihood or as a side business;
these properties may be marketed and rented by their
owners or by a management company or agent the
owner has hired.
Half of all renters wind up living in a space that is
not managed by a property manager. When they do,
most often this manager lives on-site (62 percent). The
larger the building, the more likely it will feature an onsite
property manager, with more than two-thirds (79
percent) of renters in these buildings indicating their
manager lives on-site.
Just under half (46 percent) of all renters wind up
renting from a landlord, although more than six in
10 use landlords as a resource when searching for a
property. Renters of single-family homes, however, deal
with landlords 70 percent of the time.
R-5: NUMBER OF CONTACTS
MADE WITH RENTAL
PROFESSIONALS
16%
29% 25%
70% contact two or more rental professionals
21%
Renters contact an
average of
4.7
landlords/
property managers
11%
0 1 2
3-5 6+
R-6: HOW RENTALS ARE MANAGED
SINGLE-FAMILY
HOMES
SMALL
BUILDINGS
MEDIUM
BUILDINGS
LARGE
BUILDINGS
70% 50% 52% 67%
7
Managed by landlord/
owner
Managed by landlord/
owner
On-site property
manager/property
management company
Off-site property manager/
property management
company
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 146
FAST RESPONSE TIMES
ARE CRITICAL
Today’s renters have to cast a wide net to find a new
place, contacting a variety of property managers
and landlords and crossing their fingers for a fast
response. The average renter contacts 4.7 landlords
or property managers. Older Millennial renters reach
out to the most rental professionals, contacting an
average of 5.3 landlords or property managers.
Since most renters are working on a short timeline—
about two to three months—to locate and move into a
property, response time is critical to renters.
Following an initial query by a renter, nearly one
in three (31 percent) expect to hear back from the
property manager or landlord within hours, and the
majority (71 percent) expect to hear back within one
day.
If a renter does not receive a response from a rental
professional within their expected timeframe, the
most common next step is to contact them again via
a phone call (45 percent). However, one in five (22
percent) choose to immediately move on to another
rental property they’ve set in their sights.
Additional next steps by the prospective renter
include emailing the rental professional (14 percent),
making an in-person visit to the property or
manager's office (13 percent), or sending a text
message (5 percent).
71% expect a response within 24 hours
R-7: EXPECTED RESPONSE
TIME—INITIAL INQUIRY
40%
Less than
an hour
Within 2-3 days
Within a
few hours
22%
21%
Within a week
9%
9%
Within a day
R-8: NEXT STEPS IF NO RESPONSE WITHIN EXPECTED TIME FRAME
If no response is received in expected time frame, almost a quarter of renters simply move on.
50
50
40
40
45
30
30
20
20
22
10
10
14
13
0
0%
Contact again
via phone
Move on to
other listings
Contact again
via email
Visit the property
manager's office
5
Contact again
via text
CONSUMER HOUSING TRENDS REPORT 2016

147 | BUYERS WHAT WORKS FOR RENTERS
SNAPSHOT
LONG-TERM RENTERS
The homeownership rate has steadily declined to generational lows over the past
decade, keeping a broad swath of renters—from all social and economic backgrounds—
in the rental market for more than a year.
FINANCIAL HURDLES
There are a number of factors driving this shift, including tight home inventory. When
faced with hurdles of high prices and a limited number of less expensive homes on the
market, many renters aren’t financially qualified to buy. Almost 70 percent of longterm
Millennial renters and 62 percent of long-term Generation X renters earn less than
$50,000 per year, likely making homeownership unaffordable.
That said, many renters who could likely afford to purchase a home in their market are
opting to stay in a rental instead of buying: 15 percent of Millennials renting long-term
and 22 percent of Generation X long-term renters earn $75,000 or more per year.
An evolving economy is also having an impact. Some locally booming labor markets—
driven by tech or, until recently, energy—have attracted affluent newcomers who tend to
rent before deciding whether to settle permanently. The highest percentage of long-term
renters are in the Southeast (28 percent) and West (25 percent). The Southwest has the
lowest percentage at 10 percent.
DEMOGRAPHIC TRENDS
There are also long-term demographic trends at play. Young adults are waiting longer to
buy homes as they put off many of the decisions and events that typically accompany
homeownership, including getting married and starting families—and many are content
where they are renting iv .
Forty percent of long-term renters have no plans to move within the next three years.
Millennials are the most likely to have plans to move in the next year, while one-third of
Gen X renters (33 percent), nearly one-half of Boomer renters (45 percent) and more
than half of renters in the Silent Generation (60 percent) are not planning to move to a
new home within the next three years.
CONSUMER HOUSING TRENDS REPORT
2016

WHAT WORKS FOR RENTERS BUYERS | 148
In general, long-term renters are happy with their current living situation (46
percent), and nearly half are satisfied with the price they pay (46 percent) and
the area in which they live (49 percent). In addition, one-third (33 percent) said
they want to avoid going through the stressful process of moving.
Renters who have plans to buy a home in the future tend to be a little less
satisfied with their rental: Only 30 percent claimed to be happy in their current
living situation. Hopeful buyers do tend to pay a bit more for their rent (median
monthly rent payment of $900 per month versus $750 for those with no plans
to move), and only 32 percent are happy with the rental price they are paying.
DECIDING TO MOVE
The longer the renter tends to live in the rental, the harder it may be to
eventually decide to move. More than half (56 percent) of renters not looking
to move have rented for five or more years; and just over a quarter (26 percent)
have rented for three to four years.
RENTING FOR THE LONG HAUL
Of long-term renters who are planning to move within the next three years,
the majority—55 percent—plan to find a new rental when they move. This is
even more prevalent with Young Millennials (62 percent) and members of the
Silent Generation (69 percent)—perhaps due to financial constraints. Forty
percent of long-term renters hope to be purchasing a home when they move.
Families and those with children in the household who have been renting
long-term are more likely to plan to move to a purchased home, at 47 percent
and 51 percent, respectively.
CONSUMER CONSUMER HOUSING HOUSING TRENDS TRENDS REPORT REPORT 2016

149 | RENTERS
RENTAL SELECTION &
LEASING FACTORS
"As with
buyers,
renters don’t
often seal the
deal on their
first attempt."
EVALUATING PROSPECTIVE RENTALS
Like buyers, renters take in-person tours of properties. They also must
reach out to property owners or managers and submit their application
(with credit score, income and employment status) while working
against the clock.
As with buyers, renters don’t often seal the deal on their first attempt.
The typical renter contacts five property managers or landlords, takes
three home tours and submits three applications for a rental.
The younger the renter, the more effort is typically expended, with
Millennial renters contacting more property managers (around five).
Silent Generation renters reach out to fewer property representatives,
take fewer home tours (typically one) and submit fewer rental
applications (one to two, on average).
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 150
R-9: TYPICAL ACTIVITIES OF RENTERS
CONTACTED
PROPERTY
MANAGERS/
LANDLORDS
AVERAGE # AVERAGE #
4.7 3.2
TOURED A
RENTAL HOME
IN PERSON
To evaluate prospective properties, four
out of five renters (82 percent) place
importance on taking in-person home
tours to get a sense of the space—this
is especially important for those with
children (86 percent). The majority (82
percent) also want to know lease terms
and rules before committing, and many
want to meet rental management—
especially if renting a single-family home
from a landlord (64 percent).
SUBMITTED
APPLICATION IN
PERSON/ON PAPER
AVERAGE #
1.7
SUBMITTED
APPLICATION
ONLINE
AVERAGE #
1.1
Renters also place importance on
management company reviews (48
percent), especially those living in larger
buildings (62 percent). Large-building
renters are also more interested in floor
plans (68 percent) and consumer reviews
of a building (69 percent).
R-10: IMPORTANCE IN MAKING DECISION ON RENTAL PROPERTY
Taking tours of the home and seeing the lease terms are most important when deciding if a home is right.
100
90
80
82
82
70
60
61
50
55
53
40
48
30
20
10
18
17
0% 0
Taking an
in-person tour
tour
of the home
of the home
Seeing lease
/ terms/deposit
info
info
Meeting the
/
landlord/
property
manager property in
manager advance in
advance
Viewing a floorplan
of the home
a
floorplan of
the home
Seeing reviews
Seeing reviews of
of the rental the property
of of the property
home / building manager / landlord
home/building manager/landlord
Taking a a live live
virtual tour of
tour of
the home
the home
Watching a a
recorded video
video
tour of the home
tour of the
home
CONSUMER HOUSING TRENDS REPORT 2016

151 | RENTERS
R-11: AMENITIES OF A RENTAL HOME—WHAT DRIVES SELECTION
Renters prioritize being within budget, being in a safe neighborhood and allowing their pets above other factors.
0% 10 20 30 40 50 60 70 80
MOST IMPORTANT
Is within my budget
In a safe neighborhood
Allows pets
Has my preferred number of bedrooms
Close to job/school
Has air conditioning
In a secure building
Is available in my time frame
Has in-unit laundry
Has a floor plan/layout that fits my needs
In my preferred neighborhood
In a quiet atmosphere
Has my preferred size/square footage
Close to transit
Close to family/friends
Close to shopping/services/leisure activities
Has private outdoor space
Has central heating
Offers off-street parking/garage
Has my preferred number of bathrooms
Has my preferred finishes
Has ample storage
Offers shared amenities
Comes furnished
Has an elevator in the building
LEAST IMPORTANT
Has a view
AFFORDABILITY AND SAFETY ARE MOST IMPORTANT
Renters value some but not all of the same property traits that buyers do. Their top
priority when seeking a home is finding a place that fits their budget (95 percent), with
neighborhood safety a close second concern (90 percent), mirroring buyers’ priorities.
Also important: finding a place that accepts pets (45 percent). For renters, these three
traits are more important than size or a location near the renter’s workplace or in a
preferred neighborhood.
Renters appreciate but don’t always require air conditioning, in-unit laundry and finding
a place with their desired square footage—since their top priority is finding a rental that’s
within budget, these may be amenities they’d sacrifice to get into an affordable home.
Knowing that they may not be in this home forever, renters don’t place as much weight
on whether their home has outdoor space, or if it is located near their family or friends,
particular services, or transit. Only a minority of renters say finishes, views, in-building
storage or parking are priorities.
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 152
R-12: TYPE OF RENTAL HOME CHOSEN
32%
of renters move to apartments
in small to medium-size buildings
9%
choose
townhouses
28%
choose singlefamily
houses
6%
choose duplexes
or triplexes
15%
choose apartments in
large size buildings
4%
choose condos
3%
choose room in
shared housing
1%
choose incomerestricted
home
WHERE RENTERS LAND
Renters live in a wide variety of housing types. While single-family homes are considered by
nearly half of renters, fewer than three in 10 renters end up in this type of home. More than half
of all renters live in multiunit dwellings with fewer than 50 residences, a housing category which
includes smaller apartment buildings, townhouses, condominiums or a unit within a duplex/triplex
property. A small portion of the renting population shares a space with roommates or lives in
income-restricted housing.
Renters with different ethnic backgrounds gravitate toward different types of properties. Caucasian
renters are more likely to rent a single-family home, with one in three (33 percent) living in this type
of rental, compared to one in four blacks/African-Americans and Latinos/Hispanics (24 percent for
both). Asian/Pacific Islander renters show the highest preference for larger apartment buildings,
with nearly one in four (24 percent) choosing this type of housing.
Among generations, Generation X renters show a higher incidence of living in single-family houses,
with one in three (33 percent) leasing such homes. Millennial renters, meanwhile, are the generation
most likely to rent in a larger or medium-sized apartment. Baby Boomer renters show a higher
incidence of renting in a duplex/triplex unit or living in income-restricted properties.
CONSUMER HOUSING TRENDS REPORT 2016

153 | RENTERS
CHARACTERISTICS OF HOMES RENTED
Interestingly, single-family homes are sometimes cheaper to rent than apartments. Here’s a look at
the average home among multiple types commonly chosen by renters:
• Single-family homes have the biggest footprint (1,400 square feet), median rent of $875 per month,
and have three bedrooms, two baths, and occasionally a partial bathroom.
• Apartments in small buildings (under 10 units) have the highest bedroom count
among apartment building types. These units have a median of 1,000 square feet, median rent of
$850 per month, and have two bedrooms, one bathroom, and sometimes a partial bath.
• Apartments in medium-sized buildings (10-49 units) cost a median of $850 per month, are typically
900 square feet, and have two bedrooms, one bathroom, and ocassionally a partial bathroom.
• Apartments in large buildings (50+ units) have a median of 950 square feet, median rent of $1,000
per month, and feature two bedrooms, two bathrooms, and sometimes a partial bathroom.
Renters in Western states pay the most ($1,100 median rent), followed by those in the Northeast
($1,000 median rent), Southwest ($875), Southeast ($800) and Midwest ($714).
SINGLE-FAMILY HOMES
SMALL APARTMENTS
2.9 bedrooms 1.7 bathrooms
Median sq. ft. = 1,400
Median rent = $875/month
2.1 bedrooms 1.4 bathrooms
Median sq. ft. = 1,000
Median rent = $850/month
MEDIUM APARTMENTS
LARGE APARTMENTS
1.8 bedrooms 1.4 bathrooms
Median sq. ft. = 900
Median rent = $850/month
1.8 bedrooms 1.5 bathrooms
Median sq. ft. = 950
Median rent = $1,000/month
CONSUMER HOUSING TRENDS REPORT 2016

RENTERS | 154
MOST RENTERS STAY
LOCAL
Renters aren’t often moving far. The majority
of renters (86 percent), like their buyer peers
(90 percent), are moving within the state,
with more than half (57 percent) staying
in their current city. Only one in 10 renters
(13 percent) is leaving their home state, but
among those interstate movers are many from
the Silent Generation (24 percent).
Renters are less likely than buyers to wind
up living where they initiated their search.
While some 85 percent of buyers ended their
home search where they started it, that’s less
often the case for renters (74 percent wind
up where they first looked). Silent Generation
renters, in particular, have a higher incidence
of moving to a location that wasn’t on their
initial consideration list (37 percent, versus 26
percent for renters in general).
R-13: TYPES OF LEASES
61% have a 12-month lease
61%
Month-to-month 12-month lease
8%
14%
5%
4%
9%
Lease-to-own/other
YEARLY LEASES TYPICAL
Six out of 10 (61 percent) renters sign a
12-month lease, with a minority (14 percent)
signing a month-to-month lease or no lease at
all (5 percent). Fewer than one in 10 renters
(nine percent) commits to a lease term longer
than 12 months.
Most renters sign their leases in person (85
percent) versus electronically (15 percent), with
about 20 percent of both Millennial renters
and those in larger buildings completing
the contract electronically. Most renters (56
percent) also pay their rent in person, especially
among the Silent Generation (66 percent).
One in four renters (24 percent) pays rent
online, and Millennials (27 percent) and renters
in medium-to-large buildings (32 percent and
38 percent respectively) are more likely to
do so. Of those paying online, six out of 10
(59 percent) pay via a property manager’s
website—and 83 percent pay this way in large
buildings. Others pay rent via their bank or a
peer-to-peer pay platform. Just 15 percent of
renters pay via postal mail.
6-month lease
Longer than a
12-month lease
R-14: HOW RENT IS PAID
56% of renters pay rent in person
56%
In person
Online
Through the mail
No formal lease
24%
15%
5%
Other
CONSUMER HOUSING TRENDS REPORT 2016

155 |
EXHIBIT LIST
EXHIBIT LIST
TODAY'S HOME BUYER
B-1 TODAY’S HOME BUYER
B-2 FIRST-TIME OR REPEAT BUYERS
B-3 CO-SHOPPING
B-4 TYPES OF HOMES CONSIDERED
B-5 HOME BUYING BY REGION
B-6 CONSIDERED BRAND-NEW HOMES
B-7 ALSO CONSIDERED RENTING
B1-8 TOP RESOURCES USED TO SEARCH, SHOP OR PURCHASE
B-9 DIGITAL RESOURCES
B-10 ONLINE RESEARCH BY GENERATION—ALL DEVICES
B-11 BUYERS WHO CONSIDERED MORE THAN ONE AGENT
B-12 HOW BUYERS FIND AN AGENT
B-13 EXPECTED RESPONSE TIME—INITIAL INQUIRY
B-14 HOW BUYERS EVALUATE AN AGENT
B-15 IMPORTANT FACTORS WHEN SELECTING AN AGENT
B-16 PREFERRED METHOD OF COMMUNICATION WITH AGENT
B-17 IMPORTANCE OF AGENT SERVICES
B-18 AVERAGE NUMBER OF HOME SEARCH ACTIVITIES
B-19 AMENITIES OF A HOME—WHAT DRIVES HOME SELECTION
B-20 TYPE OF HOME CHOSEN
B-21 REASONS FOR CHOOSING A CONDO
B-22 PRICE OF HOME VS. INITIAL BUDGET
B-23 HOME IMPROVEMENTS
B-24 REASONS FOR PURCHASING BRAND-NEW HOME
B-25 DISTANCES BUYERS MOVE
B-26 HOME IN A COMMUNITY WITH SHARED AMENITIES
B-27 WHO GETS PRE-APPROVED
B-28 USE OF ONLINE FINANCIAL RESOURCES
B-29 MORTGAGE VS. PAID CASH
B-30 SOURCE OF DOWN PAYMENT
B-31 SAME PROVIDER AS PRE-APPROVAL
CONSUMER HOUSING TRENDS REPORT 2016

EXHIBIT LIST | 156
B-32 RESOURCES USED TO FIND A LENDER
B-33 COMMUNICATION WITH LENDERS
B-34 NUMBER OF LENDERS CONTACTED
B-35 IMPORTANT ATTRIBUTES WHEN SELECTING A LENDER
TODAY'S HOME SELLER
S-1 TODAY’S HOME SELLER
S-2 FIRST-TIME OR REPEAT SELLERS
S-3 CO-SELLING
S-4 KEY LIFE EVENTS EXPERIENCED IN PAST TWO YEARS
S-5 HOMES SOLD VS. HOME PURCHASED
S-6 TIMELINE OF SELLER ACTIVITIES
S-7 MEDIAN SALE PRICE BY REGION
S-8 TYPE OF HOME SOLD BY GENERATION
S-9 LENGTH OF TIME CONSIDERED SELLING BEFORE LISTING
S-10 PRE-SALE RENOVATIONS BY GENERATION
S-11 TASKS COMPLETED TO READY FOR LISTING
S-12 NUMBER OF TIMES SELLING ACTIVITIES OCCURRED
S-13 NUMBER OF TIMES LIST PRICE CHANGED
S-14 TOP FIVE SELLER REGRETS
S-15 SELLING EXPERIENCE
S-16 RESOURCES USED TO SELL HOME
S-17 DIGITAL RESOURCES
S-18 WHEN SELLERS INVOLVE AN AGENT
S-19 HOW SELLERS FIND AN AGENT
S-20 IMPORTANT ATTRIBUTES WHEN SELECTING AN AGENT
S-21 IMPORTANCE OF AGENT SERVICES
S-22 AGENT COMPENSATION
S-23 NEGOTIATION WITH AGENT
S-24 SELLERS WITHOUT AN AGENT
S-25 REASONS FOR SELLING ON THEIR OWN
S-26 RESOURCES USED TO DETERMINE LIST PRICE
CONSUMER HOUSING TRENDS REPORT 2016

157 |
EXHIBIT LIST
TODAY’S HOMEOWNER
H-1 TODAY’S HOMEOWNER
H-2 HOMEOWNER ETHNICITY BY GENERATION
H-3 INCOME RANGES BY REGION
H-4 HOW OWNERS VIEW THEIR HOMES
H-5 WHO LIVES IN THE HOME
H-6 LOCATION—URBAN, RURAL OR SUBURBAN
H-7 AGE OF HOMES OWNED
H-8 INITIAL CONDITION OF HOME
H-9 RENOVATIONS AND IMPROVEMENTS MADE
H-10 RESOURCES USED FOR IMPROVEMENTS
H-11 DIY VS. HIRING A PRO
H-12 PROJECTS HOMEOWNERS MOST LIKELY TO DIY
H-13 HOW OWNERS PAID FOR IMPROVEMENTS
H-14 INITIAL BUDGET VS. FINAL BUDGET
H-15 INITIAL EXPECTATIONS VS. FINAL OUTCOME
H-16 APPROACH TO ONGOING MAINTENANCE
H-17 PROJECTS COMPLETED BY PROFESSIONALS
H-18 MOST CHALLENGING ASPECTS OF OWNING
H-19 MORTGAGE VS. PAID OFF
H-20 REFINANCED HOME—YES OR NO
H-21 REASONS FOR REFINANCING
H-22 WHEN OWNERS REFINANCED
H-23 HOW OWNERS FOUND LENDER
H-24 IMPORTANT ATTRIBUTES WHEN SELECTING A LENDER
H-25 RENTING HOME—YES OR NO
H-26 OWNING OTHER PROPERTIES
H-27 RENTING OUT OTHER PROPERTIES
H-28 IMPROVEMENTS PLANNED IN NEXT THREE YEARS
H-29 OWNERSHIP TIME FRAME VS. LIKELIHOOD TO SELL
H-30 IN CONTACT WITH AGENT—YES OR NO
H-31 AGENT RECOMMENDATION
CONSUMER HOUSING TRENDS REPORT 2016

EXHIBIT LIST | 158
TODAY'S RENTER
R-1 TODAY’S RENTER
R-2 TYPES OF HOMES CONSIDERED
R-3 RENTING BY REGION
R-4 RESOURCES USED TO SEARCH & SHOP
R-5 HOW RENTALS ARE MANAGED
R-6 NUMBER OF CONTACTS MADE WITH RENTAL PROFESSIONALS
R-7 EXPECTED RESPONSE TIME—INITIAL INQUIRY
R-8 NEXT STEPS IF NO RESPONSE WITHIN EXPECTED TIME FRAME
R-9 TYPICAL ACTIVITIES OF RENTERS
R-10 IMPORTANT FACTORS WHEN EVALUATING RENTAL HOMES
R-11 AMENITIES OF A RENTAL HOME—WHAT DRIVES SELECTION
R-12 TYPE OF RENTAL HOME CHOSEN
R-13 TYPES OF LEASES
R-14 HOW RENT IS PAID
NOTES
i
Cody Fuller, "The Evolving First-Time Homebuyer," Zillow Research (November
10, 2015), http://www.zillow.com/research/first-time-homebuyer-profile-11188/.
ii
U.S. Census Bureau, Current Population Survey, 2015.
iii
Zillow analysis of the U.S. Census Bureau and the Department of Housing
and Urban Development on new home sales and the National Association of
Realtors® on existing home sales, seasonally adjusted annual rates, August 2016.
iv
Cody Fuller, "The Evolving First-Time Homebuyer," Zillow Research (November
10, 2015), http://www.zillow.com/research/first-time-homebuyer-profile-11188/.
CONSUMER HOUSING TRENDS REPORT 2016

Zillow® Group (NASDAQ:Z and ZG) houses a portfolio of
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portfolio of consumer brands includes real estate and
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The company operates a number of business brands for
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This report is also available online.
Go to www.zillowgroupreport.com and download the PDF.